Mardi 1 décembre 2020
12h15 - 13h30
Seminar on-line


Pierre Boyer (École polytechnique (CREST))

"Pareto-Improving Tax Reforms and the Earned Income Tax Credit" 

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.

You can join this academic seminar on December 1st on-line by clicking on the link below when it's starting :


Download the paper