Property Tax Collection of Sonora Municipalities: Does Border Location Make any Difference?

Jorge Ibarra Salazar and Lida Sotres Cervantes
Authors registered in the RePEc Author Service: Jorge Ibarra - Salazar

Journal of Borderlands Studies, 2015, vol. 30, issue 2, 203-225

Abstract: Article 115 of the Mexican Constitution was modified to grant Mexican municipalities prerogatives in order to improve their financial position through own-source revenue collection. This reform made it possible for the municipalities in the same state to face a different institutional fiscal framework without contradicting the corresponding legal framework. This paper relates the institutional framework and the municipal geographic location to property tax collection. Mexican northern border municipalities have experienced higher economic and demographic growth compared with non-border municipalities. This has resulted in a higher demand for public services and infrastructure. In the face of this pressure, and given that they are allowed to modify their institutional framework, the central hypothesis in this article is to test whether the border effect helps to explain the differences in property tax revenue across municipalities, and if that effect results in higher property tax collection. These hypotheses are analyzed for the municipalities of the Mexican state of Sonora. We estimate a number of econometric specifications using a panel of annual data (2000-2005) for the 72 municipalities of Sonora. We find evidence that both institutional differences, and the identification of the northern border municipalities of Sonora help to explain variations in revenue from property tax.

Date: 2015
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/08865655.2015.1046471 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:rjbsxx:v:30:y:2015:i:2:p:203-225

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rjbs20

DOI: 10.1080/08865655.2015.1046471

Access Statistics for this article

Journal of Borderlands Studies is currently edited by Emmanuel Brunet-Jailly, Henk van Houtum and Martin van der Velde

More articles in Journal of Borderlands Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().