This study examines the potential spillover effects of the Mexican drug war and its associated violence on the fiscal realities of the U.S. border counties. Specifically, we study descriptively the data from the Rio Grande Valley (RGV) counties of the state of Texas, placing it within the broader context of all Texas counties, and find initial evidence of possible ‘silver lining’ spilling over from Mexican drug violence to the U.S. border counties’ fiscal positions. Housing activities increase and property tax reliance decreases in RGV counties relative to other Texas counties (both border and non-border). We anticipate that the findings and the suggestive evidence advanced by this study will motivate additional research efforts that can be potentially value-relevant in the policy responses from relevant U.S. authorities.
Akindayomi, A. and Garcia, S. (2014) ‘Drug violence in Mexico and its impact on the fiscal realities of border cities in Texas: evidence from Rio Grande Valley counties’, Public and Municipal Finance, 3(1). Available at: https://businessperspectives.org/journals/public-and-municipal-finance/issue-238/drug-violence-in-mexico-and-its-impact-on-the-fiscal-realities-of-border-cities-in-texas-evidence-from-rio-grande-valley-counties.
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Public and Municipal Finance