2013Volumen: Número: Lugar: ISSN:
This study examines the debts of the municipalities of the Mexican state of Jalisco from an institutional and economic
perspective. We find that fiscal institutions and institutional processes are often incomplete and inadequate. We also find
that: 1) The municipalities that borrow the most are the most developed ones; 2) most municipalities borrow debt from
development banks; 3) the most developed municipalities borrow from commercial banks; and 4) underdeveloped
municipalities borrow debt rapidly in spite of having little access to commercial banks. The study uses annual panel-data
of the 125 municipalities of Jalisco for the period 2005-2012.