Abstract

GONZALEZ RAMIREZ, Pedro Isidoro  and  GOMEZ GALARZA, Edgar. Fiscal Federalism and transfer allocations in San Luis Potosí, Mexico. Rev. mex. econ. finanz [online]. 2020, vol.15, n.3, pp.395-413.  Epub Feb 10, 2021. ISSN 2448-6795.  https://doi.org/10.21919/remef.v15i3.465.

The aim is to study the assignment of transfers to the 58 municipalities of the State of San Luis Potosi during the period 2000-2018. With a panel data of 1102 observations, a pooled regression and fixed effect model was estimated. We studied the allocation of resources from Ramo 33, of the Fondo General de Participaciones and the Fondo de Fomento Municipal. The results of this study indicated for both Ramo 33 and Fondo de Fomento Municipal, that there is no influence of policy alignment as a determinant for resource allocation. However, for the Fondo General de Participaciones there is a statistically significant evidence of increased resource allocations for those municipalities with both federal and joint political alienation. This study can be replicated in other municipalities to obtain more evidence. The proposal is original for the study of transfers to San Luis Potosí municipalities. It is concluded that political alienation is a factor that determines more transfers allocations to municipalities in the studied period.

Keywords : Fiscal Federalism; transfers; political allegiance.

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