The distribution of share to Mexican federal entities: Simulations of an alternate scheme La distribución de las participaciones a las entidades federativas en México: simulaciones de un esquema alternativo
Academic Article in Scopus
In this paper we examine a proposal to distribute the federal revenue sharing transfers, consisting in that every state maintain the coefficient of participation in the General Transfer Fund. In addition to avoiding the reduction in the coefficient of every state, with the modification of the distribution system, our proposal implies the elimination of the zero sum effect. In its operation, the proposed scheme requires additional monetary resources corresponding to a fixed proportion of the federal income from which the share to distribute is determined. In order to approach the viability of our proposal, we present ex-post (1991-1996) and ex-ante (1996-2001) simulations, taking as the reference year 1996.