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ELIE-minating poverty? Limits of the mechanism and potential improvements

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  • Alain Leroux
  • Justin Leroux

    ()
    (IEA, HEC Montréal)

Abstract

Using French data, we show that ELIE performs rather weakly when it comes to addressing the issue of poverty. Yet, eliminating poverty is also a valid normative property of any redistribution mechanism. We suggest combining ELIE with another redistributive solution aimed specifically at alleviating poverty: the personal allowance (PERAL) mechanism (Leroux, 2004 and 2007). We argue that ELIE and the PERAL mechanism, more than being compatible, are in fact complementary.

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File URL: http://www.hec.ca/iea/cahiers/2009/iea0902_jleroux.pdf
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Bibliographic Info

Paper provided by HEC Montréal, Institut d'économie appliquée in its series Cahiers de recherche with number 09-02.

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Length: 20 pages
Date of creation: Jan 2009
Date of revision:
Handle: RePEc:iea:carech:0902

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Postal: Institut d'économie appliquée HEC Montréal 3000, Chemin de la Côte-Sainte-Catherine Montréal, Québec H3T 2A7
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Cited by:
  1. Michel Lubrano, 2008. "The Redistributive Aspects of ELIE: a simulationapproach," Working Papers halshs-00347278, HAL.

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