UNA REVISIÓN DEL “EFECTO FLYPAPER" MEXICANO (1990-2012).

This paper contributes to the lack of analysis on the flypaper effect for the Mexican case, analyzing the larger number of municipalities (2,441) over 20 years (1990-2012). The presence of the flypaper effect is confirmed, but unlike Ibarra and Varella (2008); Cardenas and Sharma (2011) and Sour (2013), this paper finds that the increase in unconditional transfers proportionally increases local public spending. These results verify the prediction of Hines and Thaler (1995): money sticks where it hits. Also, the presence of the asymmetrical effect is confirmed. These results are incorporated into the discussion on fiscal federalism reform in Mexico. [ABSTRACT FROM AUTHOR]