Pierre Boyer

Séminaires généraux
amse seminar

Pierre Boyer

CREST, École Polytechnique
Pareto-improving tax reforms and the earned income tax credit
Co-écrit avec
Felix J. Bierbrauer, Emanuel Hansen

IBD Amphi

Îlot Bernard du Bois - Amphithéâtre

5-9 boulevard Maurice Bourdet
13001 Marseille

Lundi 5 octobre 2020| 11:30 - 12:45

Ewen Gallic : ewen.gallic[at]univ-amu.fr
Avner Seror : avner.seror[at]univ-amu.fr


This paper provides necessary and sufficient conditions for the existence of Pareto-improving tax reforms. The conditions can be expressed as sufficient statistics and have a wide range of potential applications in public finance. We discuss one such application in detail: the introduction of the Earned Income Tax Credit (EITC) in the US. We find that the EITC can be viewed as a response to an in-efficiency in the tax and transfer system prevailing at the time. This adds a new perspective to the literature on why the EITC is a good idea, emphasizing Pareto improvements rather than equity-efficiency trade-offs.

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