Estimation of elasticities and optimal taxes on the most consumed goods in Mexico

We estimate cross and direct elasticities for food products in Mexico. We consider Mexico’s most consumed goods, which are tortillas, meat, chicken, milk, eggs, onion, chili pepper, kidney beans, soft drinks and water. We find that using the methodology of Deaton to estimate elasticities creates dif...

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Detalles Bibliográficos
Autor: Valero Gil, Jorge N.
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2006
País:México
Institución:EL COLEGIO DE MÉXICO
Repositorio:Estudios Económicos de El Colegio de México
Idioma:español
OAI Identifier:oai:oai.estudioseconomicos.colmex.mx:article/155
Acceso en línea:https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/155
Access Level:acceso abierto
Palabra clave:food elasticities
optimal taxation
consumer economics
urban-rural analysis
agricultural markets
C31
D12
H15
O1
O54
Q13
elasticidades alimentos
impuestos óptimos
economía del consumidor
análisis rural urbano
mercados agrícolas
Descripción
Sumario:We estimate cross and direct elasticities for food products in Mexico. We consider Mexico’s most consumed goods, which are tortillas, meat, chicken, milk, eggs, onion, chili pepper, kidney beans, soft drinks and water. We find that using the methodology of Deaton to estimate elasticities creates difficulties when applying it to rural zones and cross-elasticities. We further use the estimated elasticities to find the optimal taxes for these products, to evaluate whether an optimal tax reform would call for greater consumer taxes or subsidies.