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

  • Alain Leroux

    ()

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - CNRS : UMR6579)

  • Justin Leroux

    (HEC Montréal - HEC MONTRÉAL)

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 mechanism (Leroux, 2004 and 2007). We argue that ELIE and the personal allowance mechanism, more than being compatible, are in fact complementary.

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Paper provided by HAL in its series Working Papers with number halshs-00348353.

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Date of creation: 18 Dec 2008
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Handle: RePEc:hal:wpaper:halshs-00348353
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