“Acceptable practices” under NAFTA

, 111

Agricultural producers in static model

, 100

“Ambiguous ” legal status

, 160

“American Dream”

, 80

American Smelting and Refining Company

, 30–31

Aztecs

, 6

“Bailout” measure, Federal Reserve

, 114

Border Environmental Integration Program

, 109

“Bracero” program

, 175

Bush, George W.

, 176

“Business as Usual”

, 142, 165–166

energy subsidy elimination

, 170–172

payroll contributions to social insurance

, 166–168

value added tax increases

, 168–170

Capital, agricultural sectors

, 148

Capital growth rate, with capital theory

, 101

Carbon tax simulations

, 141–145

Cárdenas, Lázaro

, 16, 33–36

Cartel “Jalisco New Generation”

, 197

CENAGAS

, 133

“China White”

, 194

Chronic transportation problems

, 27

“Cientificos”

, 14

Cinco de Mayo

, 13

Classification of sectors and goods

, 93–94

Climate change policy

mitigation

, 152–154

nature of

, 147–148

scenario

, 148–152

Cocaine

, 194, 195, 202

Colonial mining sites

, 44–45

Comisión Federal de Electricidad (CFE)

, 16

Comprehensive trade agreements

, 111

Computable General Equilibrium (CGE) model

, 91, 106, 162

Constant elasticity of substitution (CES) function

, 95

Consumers

, 97

Contributive Social Insurance (CSI) scheme

, 159

Convergence

absolute

, 47, 50

conditional

, 50

empirical economic study

, 47

income

, 51

regional

, 69

theory

, 43

Corridos

, 200

Cristeros

, 16

DACA

, 177

de Gortari, Carlos Salinas

, 17

“Democratic Transition”

, 205

Díaz, Porfirio

, 13–14, 28, 46

Diego Rivera Murals

, 34

Differences across Regions

, 46, 49

Distortionary pricing policy

, 59

“Distortions” in the informal economy

, 161

Doheny, Edward L.

, 31

Domestic consumers

, 97

Domestic farm production

, 107

Drug Enforcement Administration (DEA)

, 194

Drugs and violence

, 191–192

after World War II

, 193–195

consumption

, 199–200

demand in Mexico

, 202–204

demand in US

, 201–202

crisis

, 207

economic impact of prohibition

, 195–196

Mexican Cartels

, 196–199

supply history

, 192

“Dutch Disease”

, 23

Dynamic CGE model

, 100–102

Economic activity, regional differences in

, 46

Economic analysts

, 43

Economic development

, 43

Economic growth

, 46, 55

Economic history

, 66

Economic inequality

, 87–88

Economic institutions

, 204

Economic model

dynamic CGE

, 100–102

general equilibrium analysis

, 92–93

government sector

, 97–98

international trade

, 98–99

labor and consumption

, 96–97

modifications

, 100

production portion

, 94–96

structure

, 93–94

total production and consumption activity

, 91

Economic recovery (Mexico)

, 114

Economic shocks

, 113

Economic stagnation

Business as Usual

, 165–166

energy subsidy elimination

, 170–172

payroll contributions to social insurance

, 166–168

value added tax increases

, 168–170

informal sector

, 157

benefits schemes

, 159

characteristics

, 158

education levels in

, 160–162

formal and informal workers

, 164–165

productivity

, 160

subsidies

, 163–164

taxation policy

, 162–163

Education

Informality and

, 160–162

regional development factors

, 54–56

“El Bajío”

, 30

Electricity

Energy Reform of 2013

, 129–130

reform simulations

, 139–141

“El Grito de Dolores”

, 9

Emperor Napoleon III

, 13

Energy matrix

, 39

Energy Reform of 2013

, 38

arguments for and against new reforms

, 133

electricity

, 129–130

fracking

, 134

market stability

, 129

oil and gas sector

, 130–133

PEMEX

, 129

simulations

capital income

, 145–147

carbon tax

, 141–145

electricity reform

, 139–141

natural gas

, 135–139

natural resources

, 134

oil reserves

, 135

Europeans, arrival of

, 8

“Extractive” institutions

, 191

“Fair and Secure Immigration Reform”

, 176

“Fayuca”

, 196

Filming Pancho Villa: How Hollywood Shaped the Mexican Revolution (2004)

, 175

Financial crisis

, 31

Foreign oil companies

, 36

Foreign trade policy

, 16–17

Fossil fuels

, 39–40

Fox, Vicente

, 176

Fracking

, 134

Frontier Program 2020

, 109

Gasoline prices

, 38–39

General Agreement on Tariffs and Trade (GATT)

, 105

General Secretary of National Coordinator of Education Workers (CNTE)

, 56

Golden triangle

, 192

“Goliad Campaign”

, 10

“Good Neighbor Policy”

, 35

Government sector

, 97–98

Great Depression effects

, 33

“Great Gatsby Curve”

, 80

“Great Recession of 2008”

, 114

“Green cards”

, 186

Greenhouse gas (GHG) emissions

, 39–40

“Grievance procedures” under NAFTA

, 111

Gross Domestic Product (GDP)

, 161

Gulf Cartel

, 196, 198

“Hands-off” approach to regional development

, 60

HDI. See Human Development Index (HDI)

Heckscher–Ohlin assumptions

, 99

Heroin

, 194, 202

High-Level Economic Dialogue (HLED)

, 110

High-Level Regulatory Cooperation Council (HLRCC)

, 110

Highways and railroads, current systems

, 46, 47

Hollywood films

, 175

Homogenous prices

, 59

Huerta, Victoriano

, 15

Human Development Index (HDI)

, 66, 69–71

Hydraulic fracturing (i.e. Fracking)

, 134

Illegal drugs

, 192

Import substitution policy

, 36–37, 107

“Inclusive” institutions

, 191

Income-based poverty

, 66, 71–73

Income inequality

, 66, 73–74

Indigenous communities

Distribution regionally

, 52

goals

, 54

government funds

, 54

historically

, 51

initial efforts at organizing

, 51

“Inequality gap”

, 87

“Infant industries”

, 37

Informal sector

, 157

benefits schemes

, 159

characteristics

, 158

education levels in

, 160–162

formal and informal workers

, 164–165

productivity

, 160

taxation policy

, 162–163

Infrastructure

connectivity

, 56–57

development pattern

, 46

Institutions

economic

, 204

“extractive”

, 191, 204

“inclusive”

, 191

informal

, 204

political

, 191, 204

“War on Drugs”

, 206–207

Weakness of

, 205

Intergenerational social mobility

Analysis of

, 81–82

in Mexico

, 81–83

at state level

, 83–86

in US

, 80

See also Social mobility

International Monetary Fund (IMF)

, 113

International trade

, 98–99, 108

IRCA. See US Immigration Reform, and Control Act (IRCA)

Juárez, Benito

, 13

Krueger, Alan B.

, 79–80

Labor, Economic theory of

, 178

Labor market

, 96–97

“Latifundios”

, 28, 46

“Leader economy”

, 50

Macroeconomic shocks

, 113–115

Madero, Francisco

, 14–15

“Man, Controller of the Universe”

, 34

Manufacturing items

, 116

“Maquiladora” program

, 108

Marijuana

, 202

Matamoros cartel

, 196

McKinley tax

, 30

“Merida Initiative”

, 206–207

Mestizos

, 8

Mexican–American War

, 11

“Mexican golden triangle”

, 194

Mexican immigration

forward thinking policy

, 186

long-term immigration policy

, 185

NAFTA’s TN program

, 187

net economic benefits of

, 183–185

Mexican Revolution

, 14, 173

government’s tax policy during

, 33

labor conditions during

, 32

mining industry during

, 32

oil fortunes during

, 32

social and political pressure

, 31

Mexican trucking industry

, 123

Mexico

economic stagnation. See Economic stagnation

geography

central region

, 18–19

northern border region

, 18

southern region

, 19–20

history

central valley of Mexico

, 6

independence and northern wars

, 9–12

Olmecs

, 5–6

original inhabitants

, 5

post-revolution Mexico

, 15–18

reform and revolution

, 12–15

Spanish and Colonial Mexico arrival

, 6–9

Spanish arrival

, 5

“triple alliance”

, 6

Mexico’s largest drug cartels

, 197–198

Mexico’s oil industry

, 17

Mexico’s rigid autocratic system

, 9

Mexico’s Territory and Losses

, 11–12

Mining

agricultural and livestock activity

, 26

colonial sites

, 44–45

of industrial minerals

, 27–28

for metals

, 25

Spanish Colonization

, 25

See also Natural resource

Modern day Mexico

, 18–19

Multi-country CGE models

, 103

Multilateral and bilateral free trade agreements

, 106

NAFTA’s TN program

, 187

Napoleonic wars

, 9

Narcocorridos

, 200–201

Narcotics

, 193

“National Natural Gas Control Center”

, 133

Natural gas

production

, 138

simulations

, 135–139

Natural resource

abundance of Mexico’s

, 23

in colonial times

, 25–27

energy reform

, 37–39

expansion sectors

, 28–31

exploitation

, 24

foreign firms and capital

, 23

Great Depression effects

, 33

growth and economic development

, 23

history

, 37–39

income

, 25

during independence

, 27–28

Mexican miracle and

, 36–37

Mexican Revolution and

, 31–33

minerals and fossil fuels

, 39–40

mining

, 24

See also Mining

national income

, 23

nationalization of oil sector

, 33–36

oil crisis

, 36–37

policy

, 127

protectionism

, 36

reform

, 127

sales

, 23–24

simulations

, 134

“New Spain”

, 173

“New World”

, 6

Nixon War on Drugs

, 195

“Noche Triste”

, 7

Non-Contributory Social Insurance (NCSI) scheme

, 159

North American Development Bank (NADBank)

, 112

North American Free Trade Agreement (NAFTA)

, 17, 24, 38, 105, 176

economics of

, 107–109

goals

, 109–113

trade and macroeconomic shocks

, 113–115

trade in Mexico

, 106–107

Northern state of Tejas

, 10

Oaxaca

, 6, 52, 56, 84, 85

Obama, Barack

, 177

Oil producing states

, 59

Oil reserve, simulations

, 135

Oil sector

initial operations

, 31

nationalization

, 33–36

Oil Workers Union

, 36

“Old World”

, 5

Olmecs

, 5–6

Our model’s production sectors

, 164–165

Partido Revolucionario Institutional (PRI)

, 16, 34, 205

Pearson, Weetman

, 31

PEMEX

, 17, 37–38, 130, 131, 132

Petroleum discovery

, 31

“Petrolization”

, 37

PETROMEX

, 35

Physical well-being

, 66–67

economic history and

, 67

long-term trend in

, 69

male mean height trends

, 68

methodological reasons

, 68

socioeconomic groups

, 69

See also Well-being

“Pilot” program in trucking under NAFTA

, 111–112

“Plan of Iguala”

, 9

Policy implications

, 88

Policymakers

, 127

Political institutions

, 191, 204

Political stability

, 28

Polk, James

, 10

“Porfiriato”

, 14, 28–31

Post-revolution Mexico

, 15–18

Pre-Columbian Mexico

civilizations

, 6

cultivation of corn

, 5

Zapotecs

, 6

Pricing policy and regional development

, 58–59

Primary regions across Mexico

, 46, 48

Private energy Exploration Company

, 132

Production of electricity

, 28

Property rights in Mexican energy

, 131

Protectionist arguments

, 118

Protective tariffs

, 115–116

Public policy

, 60–61

Railroads construction of

, 30

Railway system

, 45

Ramsey model

, 100

Raphael, Ricardo

, 81

Regional development factors

education

, 54–56

infrastructure

, 56–57

pricing policy

, 58–59

trade

, 57–58

Regional migration

, 60–61

Relative social mobility

, 81

Religious celebrations

, 8

Resident visas

, 186

Roemer, John

, 79

Roman Catholic Church

, 12

Santa Anna, Antonio López de

, 10

Scott, Winfield

, 11

“Second Mexican Empire”

, 13

Second World War

, 193–194

Sectors and goods classification

, 93–94

“Shades and Colors”, roots of

, 44–46

Simple labor market analysis

, 178–181

Sinaloa Cartel

, 198

Social Accounting Matrix (SAM)

, 92

“Social building”

, 81, 85

Social mobility

Benefits of

, 79

economic growth

, 79

intergenerational. See Intergenerational social mobility

people’s achievements and

, 79

policy implications of

, 88

source of low

, 86–88

Socioeconomic inequality

, 86

Spanish arrival and Colonial Mexico

, 6–9

Spanish authority

, 8

Spanish colonial system

, 9

Subsidy

, 98

energy elimination

, 170–172

informality and subsidies

, 163–164

policy

, 145

“Suspension agreement”

, 111

Taxation policy

, 162–163

Taxes

, 98, 145

Taylor, Zachary

, 10–11

Teotihuacan

, 6

Textile industry

, 109

“The Life of General Villa”

, 175

Time of turbulence

, 27–28, 31–33

Tlaxcaltecas

, 7

“Toll Cartels”

, 196

Toltecs

, 6

Trade policy

General Agreement on Tariffs and Trade

, 105

liberalization

, 121–123

North American Free Trade Agreement

, 105, 106–107

regional development factors

, 57–58

restriction effects

in Mexico

, 115–116

in United States

, 116–121

World Trade Organization

, 105

Trade relationship balance

, 99

Trade restriction effects

in Mexico

, 115–116

in United States

, 116–121

“Treaty of Guadalupe Hidalgo”

, 11

Tremendous casualty

, 7

Trump, Donald

, 124, 177

United Nations Development Program (UNDP)

, 69

United States immigration

“Bracero” program

, 175

comprehensive immigration reform arguments for

, 177

economic impact

analysis

, 181

foreign workers

, 179

government benefits

, 182–183

labor supply curve

, 179

market wage rate

, 178

multiple market framework, winners and losers in

, 181–182

supply and demand elasticity

, 179–180

“Fair and Secure Immigration Reform”

, 176

History of

, 172–173

IRCA

, 176

NAFTA

, 176

Obama, Barack

, 177

United States (US) model

, 102–103

simulation exercise

, 119

Universal Social Insurance (USI) system

, 162, 163

US Drug Enforcement Agency (DEA)

, 200

US Immigration Reform, and Control Act (IRCA)

, 176

Value added tax (VAT)

, 162–163, 168–170

Villa, Francisco “Pancho”

, 15, 173–175

“Wage premium”

, 160–161

“War of Independence” (Mexican)

, 65

“War of Reform”

, 13, 65

“War on Drugs”

, 188, 206–207

Water pumping costs

, 59

Weighted (aggregate) tax exclusive price

, 101

Well-being

economic history

, 66

Human Development Index

, 66, 69–71

income-based poverty

, 71–73

income inequality

, 73–74

indicators

, 66

inequality

, 65

institutions

, 65

physical. See Physical well-being

post-independence period and

, 65

stagnation and

, 66–67

White House Council of Economic Advisers

, 79

World Trade Organization (WTO)

, 105, 112

Zapata, Emiliano

, 15

Zapatista Army of National Liberation (EZLN)

, 53–54

“Zapatista Schools”

, 53

Zetas

, 196