<?xml version="1.0" encoding="ISO-8859-1"?><article xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance">
<front>
<journal-meta>
<journal-id>1665-5346</journal-id>
<journal-title><![CDATA[Revista mexicana de economía y finanzas]]></journal-title>
<abbrev-journal-title><![CDATA[Rev. mex. econ. finanz]]></abbrev-journal-title>
<issn>1665-5346</issn>
<publisher>
<publisher-name><![CDATA[Instituto Mexicano de Ejecutivos de Finanzas A.C.]]></publisher-name>
</publisher>
</journal-meta>
<article-meta>
<article-id>S1665-53462023000200001</article-id>
<article-id pub-id-type="doi">10.21919/remef.v18.2.856</article-id>
<title-group>
<article-title xml:lang="en"><![CDATA[Regional Growth, Debt Thresholds and Subnational Sustainability]]></article-title>
<article-title xml:lang="es"><![CDATA[Crecimiento Regional, Umbrales de Deuda y Sustentabilidad Subnacional]]></article-title>
</title-group>
<contrib-group>
<contrib contrib-type="author">
<name>
<surname><![CDATA[Mendoza-Velázquez]]></surname>
<given-names><![CDATA[Alfonso]]></given-names>
</name>
<xref ref-type="aff" rid="Aff"/>
</contrib>
<contrib contrib-type="author">
<name>
<surname><![CDATA[Smith]]></surname>
<given-names><![CDATA[Heidi J.]]></given-names>
</name>
<xref ref-type="aff" rid="Aff"/>
</contrib>
<contrib contrib-type="author">
<name>
<surname><![CDATA[Mendoza-Martínez]]></surname>
<given-names><![CDATA[Diego]]></given-names>
</name>
<xref ref-type="aff" rid="Aff"/>
</contrib>
</contrib-group>
<aff id="Af1">
<institution><![CDATA[,Universidad Popular Autónoma del Estado de Puebla  ]]></institution>
<addr-line><![CDATA[ ]]></addr-line>
<country>Mexico</country>
</aff>
<aff id="Af2">
<institution><![CDATA[,Universidad Iberoamericana Ciudad de México  ]]></institution>
<addr-line><![CDATA[ ]]></addr-line>
<country>Mexico</country>
</aff>
<aff id="Af3">
<institution><![CDATA[,The University of Chicago  ]]></institution>
<addr-line><![CDATA[ ]]></addr-line>
<country>USA</country>
</aff>
<pub-date pub-type="pub">
<day>00</day>
<month>06</month>
<year>2023</year>
</pub-date>
<pub-date pub-type="epub">
<day>00</day>
<month>06</month>
<year>2023</year>
</pub-date>
<volume>18</volume>
<numero>2</numero>
<copyright-statement/>
<copyright-year/>
<self-uri xlink:href="http://www.scielo.org.mx/scielo.php?script=sci_arttext&amp;pid=S1665-53462023000200001&amp;lng=en&amp;nrm=iso"></self-uri><self-uri xlink:href="http://www.scielo.org.mx/scielo.php?script=sci_abstract&amp;pid=S1665-53462023000200001&amp;lng=en&amp;nrm=iso"></self-uri><self-uri xlink:href="http://www.scielo.org.mx/scielo.php?script=sci_pdf&amp;pid=S1665-53462023000200001&amp;lng=en&amp;nrm=iso"></self-uri><abstract abstract-type="short" xml:lang="en"><p><![CDATA[Abstract Aim: To examine the nexus between subnational debt sustainability and regional economic growth. Method: The study employs dynamic panels by Arellano-Bond and the kink model to estimate debt thresholds by Seo and Shin. Results: The study finds a positive association between subnational debt and regional GDP growth, which differs by type of debt. The fiscal intergovernmental architecture of federal system in Mexico results in lower debt thresholds compared to national thresholds. Recommendations: Fiscal, regulatory and normative rules on bank debt should aim to provide the right incentives to encourage regional growth. Limitations: Results from a small sample are a first approximation to the regional debt-growth nexus in Mexico. The lack of updated and consistent data for longer horizons on subnational public finance limits the generalization of the findings. Originality: The study helps to understand the effect of increasing debt on regional GDP growth in centralized fiscal systems and the differential effect by type of financing. Conclusions: Highly centrally regulated fiscal models with limited revenue autonomy could engender soft budget problems and create financial management inefficiencies.]]></p></abstract>
<abstract abstract-type="short" xml:lang="es"><p><![CDATA[Resumen Objetivo: Examinar el nexo entre la sustentabilidad de la deuda subnacional y el crecimiento regional. Métodos: El estudio emplea paneles dinámicos (Arellano-Bond) y modelos de curvatura (Seo-Shin) para estimar umbrales de deuda. Resultados: Encontramos una asociación positiva entre la deuda subnacional y el crecimiento del PIB regional que difiere por tipo de deuda. La arquitectura de las intergubernamentales fiscales del sistema fiscal federal en México genera umbrales menores respecto a los nacionales. Recomendaciones: Las reglas fiscales, regulatorias y normativas sobre la deuda bancaria deberían proveer incentivos para alentar el crecimiento regional. Limitaciones: Los resultados de la muestra pequeña en este estudio son una primera aproximación al nexo entre deuda y crecimiento. La falta de datos actualizados y consistentes para horizontes de tiempo largos limita la generalización de los resultados. Originalidad: El estudio ayuda a comprender el efecto de la deuda subnacional sobre el crecimiento del PIB regional en sistemas fiscales centralizados y el impacto diferencial por tipo de endeudamiento. Conclusiones: Modelos fiscales centralizados con autonomía limitada pueden generar problemas de presupuestos suaves e crear ineficiencias en la administración financiera.]]></p></abstract>
<kwd-group>
<kwd lng="en"><![CDATA[Municipal Debt]]></kwd>
<kwd lng="en"><![CDATA[Subnational Capital Markets]]></kwd>
<kwd lng="en"><![CDATA[Growth Threshold]]></kwd>
<kwd lng="en"><![CDATA[Debt Limits]]></kwd>
<kwd lng="es"><![CDATA[Deuda de gobiernos locales]]></kwd>
<kwd lng="es"><![CDATA[mercados de capital subnacional]]></kwd>
<kwd lng="es"><![CDATA[deuda subnacional]]></kwd>
<kwd lng="es"><![CDATA[umbrales de crecimiento]]></kwd>
<kwd lng="es"><![CDATA[límites de endeudamiento]]></kwd>
</kwd-group>
</article-meta>
</front><back>
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