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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(01), July.
  • Handle: RePEc:ags:jlaare:31164
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    File URL: http://purl.umn.edu/31164
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    References listed on IDEAS

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    1. Thomas M. Fraker & Alberto P. Martini & James C. Ohls, 1995. "The Effect of Food Stamp Cashout on Food Expenditures: An Assessment of the Findings from Four Demonstrations," Journal of Human Resources, University of Wisconsin Press, vol. 30(4), pages 633-649.
    2. Parke E. Wilde & Paul E. McNamara & Christine K. Ranney, 1999. "The Effect of Income and Food Programs on Dietary Quality: A Seemingly Unrelated Regression Analysis with Error Components," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 959-971.
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    Cited by:

    1. Justine S. Hastings & Jesse M. Shapiro, 2017. "How Are SNAP Benefits Spent? Evidence from a Retail Panel," NBER Working Papers 23112, National Bureau of Economic Research, Inc.
    2. 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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    Keywords

    Demand and Price Analysis;

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