The Food Stamp Benefit Formula: Implications For Empirical Research On Food Demand
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.
Volume (Year): 26 (2001)
Issue (Month): 01 (July)
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- 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.
- 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.
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