Policymakers have been puzzled to observe that food stamp households appear more likely to be food insecure than observationally similar eligible nonparticipating households. We reexamine this issue allowing for nonclassical reporting errors in food stamp participation and food insecurity. Extending the literature on partially identified parameters, we introduce a nonparametric framework that makes transparent what can be known about conditional probabilities when a binary outcome and conditioning variable are both subject to nonclassical measurement error. We find that the food insecurity paradox hinges on strong assumptions about the reliability of the data that are not supported by the previous food stamp participation literature.
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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number
12690.
Length: Date of creation: 30 Oct 2006 Date of revision: Publication status: Published in Journal of Human Resources, Spring 2008, Vol. 43, No. 2, pp. 352-82. Handle: RePEc:isu:genres:12690
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Find related papers by JEL classification: H5 - Public Economics - - National Government Expenditures and Related Policies I1 - Health, Education, and Welfare - - Health I3 - Health, Education, and Welfare - - Welfare and Poverty
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