Abstract

MANZANARES RIVERA, José Luis. Redistributive Capacity of Fiscal Policy in the Context of Income Polarization in Mexico, 2008-2012. Econ: teor. práct [online]. 2016, n.45, pp.67-96. ISSN 2448-7481.

In this paper, the relationship between fiscal expenditures and income polarization is documented. Additionally, the spatial behavior of income polarization is examined in the context of selected federal expenditures outlined in the Budget for the period 2008-2012. The analysis is based on micro data from the Encuesta Nacional de Ingresos y Gastos de los Hogares (National Survey of Income and Expenses of Households) following the Duclos, Esteban and Ray methodology to estimate polarization using a non-parametric approach. Results suggest that the fiscal expenditure implicit in the Impuesto Especial sobre Producción y Servicios (Special Tax on Production and Services) has potential to reduce IDER from 0.26 to 0.23. Also an extreme inequality spatial pattern is identified, which extends from Michoacán to Veracruz and Tamaulipas, forming a polarization belt.

Keywords : fiscal expenditures; inequality; federal appropriations; Ramo 33; budget.

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