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The Food Stamp Benefit Formula: Implications For Empirical Research On Food Demand

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  • Wilde, Parke E.

Abstract

To understand how food stamps affect food spending, nonexperimental research typically requires some source of independent variation in food stamp benefits. Three promising sources are examined: (a) variation in household size, (b) variation in deductions from gross income, and (c) receipt of minimum or maximum food stamp benefits. Based on results of a linear regression model with nationally representative data, 90% of the total variation in food stamp benefits is explained by gross cash income, and household size variables alone. This finding raises concern about popular regression approaches to studying the Food Stamp Program.

Suggested Citation

  • Wilde, Parke E., 2001. "The Food Stamp Benefit Formula: Implications For Empirical Research On Food Demand," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(1), pages 1-16, July.
    • Handle: RePEc:ags:jlaare:31164
    DOI: 10.22004/ag.econ.31164
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    References listed on IDEAS

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    Cited by:

    1. Justine Hastings & Jesse M. Shapiro, 2018. "How Are SNAP Benefits Spent? Evidence from a Retail Panel," American Economic Review, American Economic Association, vol. 108(12), pages 3493-3540, December.
    2. Tian, Zheng & Schmidt, Claudia & Goetz, Stephan J., 2022. "The Role of Community Food Services in Reducing U.S. Food Insufficiency in the COVID-19 Pandemic," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(3), September.
    3. Mehreen S. Ismail & Michele Ver Ploeg & Virginia Chomitz & Parke Wilde, 2024. "Examining the role of the excess shelter deduction in the Supplemental Nutrition Assistance Program benefit formula," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(1), pages 300-317, March.
    4. Parke E. Wilde & Lisa M. Troy & Beatrice L. Rogers, 2007. "Food Stamps and Food Spending: An Engel Function Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(2), pages 416-430.

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