Estudios Económicos (Jan 2016)

COMPARISON OF FISCAL SYSTEM PROGRESSIVITY OVER TIME: THEORY AND APPLICATION IN MEXICO

  • Luis Huesca Reynoso,
  • Abdelkrim Araar

Journal volume & issue
Vol. 31, no. 1
pp. 3 – 45

Abstract

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Assessing the progressivity of a fiscal system is relevant to develop a global idea on the extent of redistribution. We analyze the evolution of how fiscal policy affects the design of a fiscal system, as well as its progressivity over time. We assess the dynamics of progressivity during the period 2002-2012. This work adopts a non-parametric approach to measure the progressivity of taxes and transfers in Mexico, using a common support of comparison. Progressivity increased and high levels of polarization and inequality generate a non-negligible impact on its level when the common support of comparison is applied.