Access to finance and informality: The Mexican tax on cash deposits

My research focuses on tax systems in developing countries and in particular on the issues of tax evasion and informality. The purpose of the trip was to study an innovative tax, the “Impuesto a los Depositos en Efectivo” (IDE), aimed at using cash deposits information to enforce tax payment. An in depth evaluation of the effect of the tax requires microeconomic data of monthly deposits; the goal of the trip was to present the project to obtain such data to the central bank of Mexico and private banks. In addition during this trip I worked in cooperation with Enrique Seira (ITAM/Banco Central) on a project to evaluate the programs of the bank for development and inclusion (Bansefi), which aimed at increasing savings among the poorest 20% of the Mexican population. I have presented the project to one of the major banks in Mexico, and have received approval by their chief economist; I will return in Mexico DF at the end of September to specify the data needed and discuss the details of the partnership. I have also written a draft of the paper evaluating the programs to increase savings in Mexico. In addition to practical lessons about presenting an academic idea to professionals, I benefited greatly from the advice and collaboration of ITAM’s faculty and PhD students. The results of the two study will be used as chapters for my dissertation and I hope to disseminate the relevant results to economic policy circles.