Arbeitspapier
Bargaining for fiscal control: Tax federalism in Brazil and Mexico, 1870-1940
This paper studies the historical origins of the federalist institutions in Mexico and Brazil. Using a bargaining game model, I argue that the type of commodities each country produced by the end of the nineteenth Century determined the negotiation power of local governments. This led to the buildup of opposite federalist institutions in both countries, which have persisted until nowadays. The model shows that countries with regions with more autonomy to produce and trade their commodities increase the local power to collect more taxes. While in Brazil coffee was the most important commodity, Mexico relied on mining products. Coffee was produced by local landowners who became economically powerful and they were able that export taxes were collected locally with the proclamation of the 1891 Constitution. Empirical estimates show that, after 1891, exporter states increased significantly their own fiscal revenue. On the other hand, mining was capital and technology intensive, inputs that were domestically scarce in Mexico. To finance those activities foreign investment was promoted centrally, weakening the relative power of local elites.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Papers ; No. 2011-06
- Klassifikation
-
Wirtschaft
State and Local Taxation, Subsidies, and Revenue
Intergovernmental Relations; Federalism; Secession
Economic History: Government, War, Law, International Relations, and Regulation: Latin America; Caribbean
Regional and Urban History: Latin America; Caribbean
- Thema
-
Institutions
Fiscal Federalism
Public Finance and Endowments
Finanzgeschichte
Finanzbeziehungen
Verhandlungstheorie
Brasilien
Mexiko
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Martínez Fritscher, André
- Ereignis
-
Veröffentlichung
- (wer)
-
Banco de México
- (wo)
-
Ciudad de México
- (wann)
-
2011
- Handle
- Letzte Aktualisierung
-
04.11.1970, 04:54 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Martínez Fritscher, André
- Banco de México
Entstanden
- 2011
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