In order to analyze the transfers policy among different levels of government, first it is necessary to calculate the capacity and fiscal effort of the specific region of study. This paper reviews the different methods to compute these two concepts and it also shows how the availability of...

In the last years, Latin America has been immersed in a process of great democratic openness that generated a demand for more fiscal decentralization. Within this subject, this paper has the goal of contributing to the discussion on tax responsibilities devolution to local governments....

In this paper we present evidence of the flypaper effect on unconditional transfers in the Mexican municipalities during the 1990 to 2007 period. Using panel data, we also confirm an asymmetric effect. That is, authorities increase expenditures by a greater amount in response to an increase in...