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The Redistributive Aspects of ELIE: a simulationapproach

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  • Michel Lubrano

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

Abstract

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.

Suggested Citation

  • Michel Lubrano, 2008. "The Redistributive Aspects of ELIE: a simulationapproach," Working Papers halshs-00347278, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00347278
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00347278
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    References listed on IDEAS

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    1. Alain Leroux & Justin Leroux, 2008. "ELIE-minating poverty? Limits of the mechanism and potential improvements," Working Papers halshs-00348353, HAL.
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    8. Duclos, Jean-Yves & Tabi, Martin, 1999. "Inégalité et redistribution du revenu, avec une application au Canada," L'Actualité Economique, Société Canadienne de Science Economique, vol. 75(1), pages 95-122, mars-juin.
    9. David de la Croix & Matthias Doepke, 2003. "Inequality and Growth: Why Differential Fertility Matters," American Economic Review, American Economic Association, vol. 93(4), pages 1091-1113, September.
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    Cited by:

    1. David de La Croix & Michel Lubrano, 2009. "The Tradeoff Between Growth and Redistribution: ELIE in an Overlapping Generations Model," Working Papers halshs-00382513, HAL.

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