Search

This paper explores the Mexico City Government's accountability with respect to public debt in the time period 1999-2015. The questions we pose are as follows: To which projects were resources emanating from public debt allocated? Did the accountability mechanisms make it possible to evaluate the projects funded with public debt? Although the laws stipulate that entities are bound to be transparent about their allocation of debt, there is clearly only partial accountability when it comes to all of the funding models, including: private banking, development banking, the stock market, and public-private partnerships (PPP). Moreover, the opacity is total where evaluating outcomes is concerned. Using a cointegration test for debt and public investment, we assert that total public debt has some effect on the behavior of public investment in Mexico City. [ABSTRACT FROM AUTHOR]