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

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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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  • Alain Leroux & Justin Leroux, 2009. "ELIE-minating poverty? Limits of the mechanism and potential improvements," Cahiers de recherche 09-02, HEC Montréal, Institut d'économie appliquée.
    • Handle: RePEc:iea:carech:0902
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    File URL: http://www.hec.ca/iea/cahiers/2009/iea0902_jleroux.pdf
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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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