Distributional effects on excise taxes among Mexican households

Resumen

This paper measures the effect of excise taxes on specific goods for Mexican households. A semi-parametric quantile approach is used with a functional relationship to explain the payments of excise taxes for five category goods (high-calorie food, alcohol, tobacco, gasoline and diesel and others), using household consumption microdata in per capita units and attributes of the household head as explanatory variables as well. Findings show an average tax elasticity of -0.30 as a response in consumption of such goods. Also, quintile 1 bare a greater share of the tax burden and elasticities varies significantly along the quintiles with gasoline as the product with the greatest variation. It is original because it offers an alternative way to estimate not only incidence but also redistributive impacts on the payment of excise taxes with a semi-parametric measure along the quintile distribution for each good taxed.