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The Distinct Impact Of Food Stamps On Food Spending

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  • Wilde, Parke E.
  • Ranney, Christine K.

Abstract

The Southworth hypothesis predicts that inframarginal food stamp recipients should choose the same bundle of goods, whether they receive coupons or cash. Empirical research has contradicted this prediction. Here, we present a model that retains some attractive features of the Southworth hypothesis, while relaxing the key assumption that appears to be incorrect. In particular, we allow different forms of benefits to have distinct effects on desired, or unrestricted food spending. Two categories of previously commonly used empirical models are evaluated as special cases of our more general model. We estimate this model using data from two cash-out experiments.

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Bibliographic Info

Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 21 (1996)
Issue (Month): 01 (July)
Pages:

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Handle: RePEc:ags:jlaare:31002

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Web page: http://waeaonline.org/
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Related research

Keywords: Consumer/Household Economics; Food Security and Poverty;

References

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  1. Gahvari, Firouz, 1995. "In-Kind versus Cash Transfers in the Presence of Distortionary Taxes," Economic Inquiry, Western Economic Association International, vol. 33(1), pages 45-53, January.
  2. Mittelhammer, Ronald C. & West, Donald A., 1975. "Food Stamp Participation Among Low-Income Households: Theoretical Considerations Of The Impact On The Demand For Food," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 7(01), July.
  3. Chavas, Jean-Paul & Yeung, M.L., 1982. "Effects Of The Food Stamp Program On Food Consumption In The Southern United States," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 14(01), July.
  4. Smallwood, David M. & Blaylock, James R., 1985. "Analysis Of Food Stamp Program Participation And Food Expenditures," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 10(01), July.
  5. Murray, Michael P, 1994. "How Inefficient Are Multiple In-Kind Transfers?," Economic Inquiry, Western Economic Association International, vol. 32(2), pages 209-27, April.
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Citations

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Cited by:
  1. Joseph Harkness & Sandra J. Newman, 2002. "The Interactive Effects of Housing Assistance and Food Stamps," JCPR Working Papers 272, Northwestern University/University of Chicago Joint Center for Poverty Research.
  2. Breunig, Robert & Dasgupta, Indraneel & Gundersen, Craig & Pattanaik, Prasanta, 2001. "Explaining The Food Stamp Cash-Out Puzzle," Food Assistance and Nutrition Research Reports 33869, United States Department of Agriculture, Economic Research Service.
  3. Wilde, Parke E. & Ranney, Christine K., 1997. "A Monthly Cycle In Food Expenditure And Intake By Participants In The U.S. Food Stamp Program," Working Papers 127820, Cornell University, Department of Applied Economics and Management.
  4. Robert Breunig & Indraneel Dasgupta, 2003. "Welfare Transfers and Intra-Household Trickle Down: A Model with Evidence from the US Food Stamp Program," CEPR Discussion Papers 469, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  5. Harkness, Joseph & Newman, Sandra, 2003. "The interactive effects of housing assistance and food stamps on food spending," Journal of Housing Economics, Elsevier, vol. 12(3), pages 224-249, September.
  6. Robert Breunig & Indraneel Dasgupta, 2005. "Do Intra-Household Effects Generate the Food Stamp Cash-Out Puzzle?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 552-568.
  7. Stewart, Hayden & Blisard, Noel, 2008. "Are Lower Income Households Willing and Able To Budget for Fruits and Vegetables?," Economic Research Report 56446, United States Department of Agriculture, Economic Research Service.

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