The observation that collection lags combine with inflation to erode fiscal revenues has long been a strong argument against seigniorage (Tanzi (1978)). However, with the exception of Dixit (1991), who used a general equilibrium model to reject this argument, the optimal tax literature has not...

Government financing of schooling is necessitated by capital market imperfections. Governments are also responsible for maintaining a stock of public capital that enters private production function. In this paper the welfare implications and politics of these investments are examined in a...

The observation that inflation reduces real revenues when there are lags in tax collection has long been a strong argument against seigniorage. However, with the exception of Dixit, who used a general equilibrium model to reject this argument, the optimal taxation literature has not analyzed how...

El análisis de la relación fiscal entre gobiernos busca contestar por qué se adopta una estructura federal, y cómo se asignan y se descentralizan las funciones de gasto e ingreso entre niveles diversos de gobierno. La descentralización surge de la idea de que los beneficios de la...

La distribución de los recursos y potestades tributarias entre los diferentes niveles de gobierno tiene suma importancia para la organización de las tareas económicas del Estado. La eficiencia económica y la función de estabilización macroeconómica requieren de una mayor centralización...

This paper measures the effect of the labor factor mobility on the convergence rate to the steady state of the economy. It is estimated that this rate is relatively low for the Mexican Federate States, compared with other countries like the United States and Japan. However, the rates between the...

This paper offers possible explanations for three generally observed facts about fiscal policy and development: (F1) The relative size of government increases as an economy develops, (F2) The rise in government and taxation are associated with rising or constant economic growth rates, and (F3)...

Virtually all developing economies, now and in the past, have large gaps in labor productivity across sectors. We argue the presence of a traditional sector of family-based production, where markets for land and labor are nonexistent or underdeveloped, is important in explaining the persistence...