Optimization of the consumption function under the North American Free Trade Agreement

Consumption function

  • Dora Ledesma INEGI
  • Lidia National Institute of Statistic and Geography
  • Teresa Indepent researcher
Keywords: Consumption functions; social programms; government incomes

Abstract

In the last 40 years, the country has turned to developing the primary and tertiary sectors with a tax policy heavily taxing goods outside the basic basket and generalizing others. On the other hand, Government implemented support programs for vulnerable sectors. The imbalance between what the government receives and grants created greater poverty, affecting mainly households in the first three income deciles. This work shows this imbalance in different scenarios using an optimization model.

Author Biographies

Lidia, National Institute of Statistic and Geography

Area: Microdata

Rank: Middle management coordination liaison

Teresa, Indepent researcher

Independent researcher

References

[1] Ledesma-Carrión D.E., Hernández-Hernández L., Daudé-Balmer R. J., and Muciño-Porras M.T.L., “Social accounting matrix founded on system of national accounting: case of mexico”; Asian Journal of Science and Technology Vol. 6, Issue 06, pp. 1487-1522, June, 2015. ISSN: 0976-3376. www.journalajst.com/sites/default/files/2144.pdf
[2] Ledesma-Carrión D.E. and Hernández-Hernández L. and Muciño-Porras M. T. L., “Social Accounting Matrix on the Base of the Mexican System of National Accounting”, Economics World, May-June 2016, Vol. 4, No. 3, 111-127.
DOI:10.17265/2328-7144/2016.03.002 www.davidpublisher.com/index.php/Home/Article/index?id=25778.html
[3] Rosario Cervantes-Martínez, Jorge Villaseñor-Becerra & Martín Romero-Morett; “NAFTA trade (and some extra NAFTA trade) in value added and its distribution, 1995-2011”; Journal of Economic Structures; Springer Open; DOI: 10.1186/s40008-016-0059-2.
[4] Eduardo Loría; “Sobre el lento crecimiento económico de México; Una explicación estructural (On Mexico's slow economic growth; A Structural Explanation)”; Investigación económica, vol. LXVIII, 270, October December 2009, pp. 37-68.
[5] Ledesma-Carrión DE and Hernández-Hernández L and Muciño-Porras MTL (2020); “When An Economy Grows Around 2% For Decades, Is It A Structural Problem?”, in: Archives of Business Review – Vol. 8, No.12, Publication Date: December 25, 2020. Pp 203-217. DOI: 10.14738/abr.812.9535. https://journals.scholarpublishing.org/index.php/ABR/article/view/9535
[6] OCDE, “Estudios económicos de la OCDE, MÉXICO; Visión general; Mejores políticas para una vida”; Enero 2015; Este estudio se publica bajo la responsabilidad del Comité de Revisión Económica y de Desarrollo de la OCDE. http://www.oecd.org/economy/surveys/Mexico-Overview-2015%20Spanish.pdf
[7] SHCP (2020). “Distribución del pago de impuestos y recepción del gasto público por deciles de hogares y personas”. Resultados para el año de 2012-2016.
https://www.cefp.gob.mx/publicaciones/documento/2020/cefp0112020.pdf
https://www.finanzaspublicas.hacienda.gob.mx/work/models/Finanzas_Publicas/docs/congreso/infoanual/2020/ig_2020.pdf
https://www.finanzaspublicas.hacienda.gob.mx/work/models/Finanzas_Publicas/docs/congreso/infoanual/2018/ig_2018.pdf
[8] INEGI (2021), SCNM, Datos (inegi.org.mx)
[9] United States Census Bureau, “North America Industrial Classification System, 2007”, http://www.census.gov/eos/www/naics/
[10] Mexico Foreign Trade Inquiry System (Sistema de Información Arancelaria Vía Internet, SIAVI), “Tariff and statistical information of Mexico. Import and Export of goods and services”, http://www.economia.gob.mx/comunidad-negocios/comercio-exterior/informacionestadistica-y-arancelaria
[11] ENIGH [Household Income and Expenditure Survey]. (2012). ENIGH (National Survey on household income and spending, 2012). Retrieved from https://www.inegi.org.mx/temas/ingresoshog/#Publicaciones
[12] Maradze T.C., Nyoni T. & Nyoni S.P., Tax evasion and tax avoidance in harare, Zimbabwe: empirical evidence from a logit model, in: IJARIIE-ISSN(O)-2395-4396, Vol-6 Issue-6, 2020.
[13] Sytnyk N. and Sych O., Tax Barden on the Enterprise in Ukraine, Repository of University of Wroclaw, Finance i Rachinkowość Nr 6. DOI: 10.34616/23.20.102. 2020.
[14] Suresh G. and Arul R., Goods ans services tax: a fine is a tax for doing something wrong; a tax is a fine for doing something right, in: Imayam Journal of Commerce and Management 1(2) 2017, pp. 28-32. ISBN 987-93-80530-66-6.
[15] Ortega-Díaz A, Medlock K.B., Price elasticity of demand for fuels by income level in Mexican households, in: Energy Policy 151 (2021) 112132.
[16] Gillman M, Income Tax Evasion: Tax Elasticity, Welfare, and Revenue, in: Institute of economics, centre for economic and regional studies, CERS-IE WP – 2020/38, budapest, 2020.
https://www.mtakti.hu/wp-content/uploads/2020/09/CERSIEWP202038.pdf
[17] Guo Y., Qiuping O., Peng M., Research on the Role of Tax Planning in Preventing Corporate Tax Risks, in: Universe Scientific Publishing, Modern Management Forum Volume 4 Issue 4, 2020, pps. 153-159. doi: 10.18686/mmf.v4i4.2784.
[18] Dombou D.R.T., Shadow effect from laffer tax allergy: new tax policy tool to fight tax evasion, in: Theoretical and Practical Research in Economic Fields, Volume XI, Summer 2020, 1(21): 27- 46. DOI: https://.doi.org/10.14505/tpref.v11.1(21).03
[19] Koatsaa N., Ch. Paramaiahb Ch. & Sconac M., Tax burden and economic growth in Lesotho: An estimate of the optimal tax burden, in: Accounting 7 (2021) 525–534. doi: 10.5267/j.ac.2021.1.006.
[20] Arin, K.P., Devereux K., Mazur M., Taxes and Firm Investment (January 19, 2021). In: CAMA Working Paper No. 8/2021, Available at SSRN:
https://ssrn.com/abstract=3768934 or http://dx.doi.org/10.2139/ssrn.3768934
[21] Shaidurova N. & Homokyová M., The Methodology of Tax Records for the Support of Tax Management, in: Multidisciplinary Aspects of Production Engineering – MAPE vol. 3, issue 1, pp. 720-731, 2020. doi:10.2478/mape-2020-0060.
Published
2021-02-15
How to Cite
Ledesma, D., Hernández-Hernández, L., & Muciño-Porras, M. T. L. (2021). Optimization of the consumption function under the North American Free Trade Agreement. Archives of Business Research, 9(2), 87-103. https://doi.org/10.14738/abr.92.9733