Mexico's Fiscal Crisis
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Mexico's current crisis has its origins in a number of structural conditions that developed in the 1970s. This paper examines one of these structural impediments, the country's fiscal disequilibrium. An empirical analysis of the country's tax structure indicates that there is ample scope for major tax reforms geared to introducing more responsiveness into the country's tax collection system. Given that the government will have to reduce its budget deficit to comply with IMF stabilization requirements, the analysis indicates tax reform rather than expenditure reduction would be the most efficient policy in achieving this objective.
Socio-Economic Planning Sciences, vol. 21, no.6, 1987.Refereed Journal Article
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