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

Alain Leroux (1) , Justin Leroux (2)

1 GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille
2 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.

Mots clés: poverty; redistribution; social justice

Domaines: Economies et finances

Alain Leroux, Justin Leroux. ELIE-minating poverty? Limits of the mechanism and potential improvements. 2008. ⟨halshs-00348353⟩