Property tax and municipal human development: evidence in Jalisco, Mexico
Abstract
Human development transcends a view focused solely on economic growth by evaluating progress according to qual ity of life and opportunities in education, health, and in come. At the municipal level, this perspective is especially relevant, as municipal governments require sufficient rev enue to finance public policies that promote such develop ment. This study examines the effect of property tax on human development in the municipalities of the state of Jalisco during the period 2010-2020. To this end, two complementary quantitative techniques were employed: a panel data model to estimate average effects and a com posite index to explore the relationship between prop erty tax revenue and the level of human development, considering municipal heterogeneity based on popula tion size and regional location. The results indicate that property tax has a positive effect on human development. Furthermore, it is observed that most municipalities show a favorable relationship between both variables, while those with a poor relationship are concentrated in areas bordering other states. Based on these findings, actions are proposed aimed at strengthening municipal fiscal capacity by increasing the efficiency of property tax collection.
