Effects on the Mexican Economy Derived from PRI's* Fiscal Reform Proposal Draft Presented in 2011; a Multisectorial Analysis Applying a General Equilibrium Model

Any proposal of economic policies, requires to be analyzed rigorously to know the extent of its results. In this work we use a general equilibrium model applied to Mexican economy, with the intention of getting the effects of the fiscal policy proposal announced at the beginning of 2011 by some legislators of the Partido Revolucionario Institucional. These results show that this proposal, would not affect groups with less income, but it would generate less revenue from taxes. Conclusions point out the importance to establish compensation mechanisms that help plan and discuss fiscal policies in order to promote a higher revenue from taxes and a better utilization of public funds.