The Redistributive Aspects of ELIE: a simulation
approach

Michel Lubrano (1)

1 GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille

This paper analyses the problems linked to the implementation of the Equal Labour Income Equalisation (ELIE) scheme proposed by Kolm (2005). It successively studies the influence of uncertainty in the knowledge of individual incomes, the impact of equivalence scales and finally the consequences of capital accumulation. If uncertainty does not modify fundamentally the equity properties of ELIE, equivalence scales can have non trivial consequences depending on the relation between income and fertility. Finally, capital accumulation introduces strong inequalities in taxation. The paper relies on simulations of the income distribution, calibrated on French data and on the use of taxation indices.

Mots clés: inequality; ELIE; income distribution

Domaines: Economies et finances

Michel Lubrano. The Redistributive Aspects of ELIE: a simulation
approach. 2008. ⟨halshs-00347278⟩