Dynamic effect of legal complexity on the value added tax in Mexico
Journal
Economics Bulletin
ISSN
1545-2921
Publisher
Economics Bulletin
Date Issued
2025
Author(s)
Mata, Leovardo
Beltrán, Jaime Humberto
Type
text::journal::journal article
Abstract
This paper studies legal complexity and its dynamic relationship with the Value Added Tax Law, from its original version published in 1978 to the current version. To this end, the variables structure, entropy, and interdependence of the legal texts associated with the VAT Law constitute the complexity index. A VAR model then finds evidence of Granger causality between legal complexity and VAT, although no cointegration relationship exists. Furthermore, an inverse relationship between the variables is confirmed, quantifying the short-term effect of legal complexity and comparing it for robustness with the estimation of an ARIMAX and generalized OLS model. © 2025, The authors. © Economics Bulletin. All rights reserved.
Subjects
License
Acceso Abierto
How to cite
Moreno, J., Mata, L., Beltrán, J.H. and Dávila, G. (2025) ''Dynamic effect of legal complexity on the value added tax in Mexico'', Economics Bulletin, Volume 45, Issue 4, pages 1710-1722