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

Alain Leroux and Justin Leroux

No 09-02, Cahiers de recherche from HEC Montréal, Institut d'économie appliquée

Abstract: 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.

Pages: 20 pages
Date: 2009-01
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Citations: View citations in EconPapers (1)

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Working Paper: ELIE-minating poverty? Limits of the mechanism and potential improvements (2008)
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