Do Intra-Household Effects Generate the Food Stamp Cash-Out Puzzle?
AbstractPrevious empirical studies have noted the higher marginal propensity to consume food out of food stamps in the United States, compared to that out of cash income. Analyzing data from U.S. Food Stamp Program participants, we find evidence that this discrepancy may be driven primarily by the behavior of multiple-adult households. Single-adult households show no evidence of any discrepancy. Thus, our results suggest that food stamp and cash income (welfare or market) may have very different impact on the intra-household allocation process, and that this is reflected empirically in the cash-out puzzle. Copyright 2005, Oxford University Press.
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Bibliographic InfoArticle provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.
Volume (Year): 87 (2005)
Issue (Month): 3 ()
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- Chen, Zhiqi & Woolley, Frances, 2001.
"A Cournot-Nash Model of Family Decision Making,"
Royal Economic Society, vol. 111(474), pages 722-48, October.
- Wilde, Parke E. & Ranney, Christine K., 1996. "The Distinct Impact Of Food Stamps On Food Spending," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(01), July.
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