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Food Stamps and the Market Demand for Food

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  • Albert J. Reed
  • J. William Levedahl

Abstract

This article compares estimates of disaggregated market food demand responses to the Supplemental Nutrition Assistance Program benefits based on exact nonlinear aggregation to responses based on linear aggregation. By accounting for income inequality, nonlinear aggregation implies that only the households that receive benefits contribute to market demand responses. In contrast, linear aggregation presumes all households receive benefits and thus contribute to the market demand response. The consequence is that nonlinear market estimates are smaller than the linear estimates by roughly the fraction of households that receive benefits. Copyright 2010, Oxford University Press.

Suggested Citation

  • Albert J. Reed & J. William Levedahl, 2010. "Food Stamps and the Market Demand for Food," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(5), pages 1392-1400.
    • Handle: RePEc:oup:ajagec:v:92:y:2010:i:5:p:1392-1400
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    File URL: http://hdl.handle.net/10.1093/ajae/aaq069
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    Cited by:

    1. Steele, Marie & Weatherspoon, Dave, 2016. "Demand for Varied Fruit and Vegetable Colors," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235912, Agricultural and Applied Economics Association.
    2. Zhiming Qiu & Chanjin Chung, 2017. "Effects of Food Assistance Programs, Demographic Characteristics, and Living Environments on Children¡¯s Food Insecurity," Applied Economics and Finance, Redfame publishing, vol. 4(4), pages 145-159, July.

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