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The Distinct Impact Of Food Stamps On Food Spending

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

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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File URL: http://purl.umn.edu/31002
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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
Contact details of provider: Web page: http://waeaonline.org/

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  1. Murray, Michael P, 1994. "How Inefficient Are Multiple In-Kind Transfers?," Economic Inquiry, Western Economic Association International, vol. 32(2), pages 209-27, April.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
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