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Analysis Of Food Stamp Program Participation And Food Expenditures

Author

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  • Smallwood, David M.
  • Blaylock, James R.

Abstract

A two equation model is developed to examine jointly the determinants of household food stamp program participation and program effects on food expenditures. The model is unique in that it postulates that the participation decision is based on a cost-benefit ratio, selected socioeconomic characteristics, and the potential for increasing both food and nonfood expenditures. Data from the 1977-78 USDA Nationwide Food Consumption Survey Supplemental Low Income Sample is used to estimate the model. Findings suggest that households, in making the participation decision place equal value on the potential for increasing their food and nonfood expenditures. However, at the margin, bonus stamp income is found to have more than twice the impact of money income on food expenditures. The model's potential for policy analysis is also examined.

Suggested Citation

  • 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), pages 1-14, July.
    • Handle: RePEc:ags:wjagec:32513
    DOI: 10.22004/ag.econ.32513
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    References listed on IDEAS

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    1. Neenan, Pamela H. & Davis, Carlton George, 1977. "Impact Of The Food Stamp Program On Low Income Household Food Consumption In Rural Florida," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 9(2), pages 1-9, December.
    2. 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), pages 1-9, July.
    3. Neenan, Pamela H. & Davis, Carlton G., 1977. "Impact of the Food Stamp Program on Low Income Household Food Consumption in Rural Florida," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 9(2), pages 89-97, December.
    4. Herman M. Southworth, 1945. "The Economics of Public Measures to Subsidize Food Consumption," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(1), pages 38-66.
    5. James Heckman, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    6. Danziger, Sheldon & Haveman, Robert & Plotnick, Robert, 1981. "How Income Transfer Programs Affect Work, Savings, and the Income Distribution: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 19(3), pages 975-1028, September.
    7. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1, December.
    8. Schmidt, Peter, 1978. "Estimation of a Simultaneous Equations Model with Jointly Dependent Continuous and Qualitative Variables: The Union-Earnings Question Revisited," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 453-465, June.
    9. Epperson, James E. & Huang, Chung L. & Fletcher, Stanley M. & Scearce, W. Keith, 1980. "The Determinants Of Food Stamp Program Participation," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 12(2), pages 1-5, December.
    10. Huang, Chung L. & Fletcher, Stanley M. & Raunikar, Robert, 1981. "Modeling the Effects of the Food Stamp Program on Participating Households' Purchases: An Empirical Application," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 13(2), pages 21-28, December.
    11. Lane, Sylvia & Kushman, John E. & Ranney, Christine K., 1983. "Food Stamp Program Participation: An Exploratory Analysis," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 8(01), pages 1-14, July.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Wilde, Parke E. & Ranney, Christine K., 1996. "The Distinct Impact Of Food Stamps On Food Spending," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(01), pages 1-12, July.
    2. Martinez, Steve W. & Dixit, Praveen M., 1992. "Domestic Food Assistance Programs: Measuring Benefits to Producers," Staff Reports 278672, United States Department of Agriculture, Economic Research Service.
    3. Jayson L. Lusk & Rock Andre, 2017. "Aid relief in Haiti after the earthquake: Haitians’ preferences for food and other basic commodities," Development Policy Review, Overseas Development Institute, vol. 35, pages 303-321, October.
    4. Allin, Susan & Beebout, Harold, 1989. "Determinants of Participation in the Food Stamp Program: A Review of the Literature," USDA Miscellaneous 338578, United States Department of Agriculture.
    5. Levedahl, J. William, 1991. "The Effect of Food Stamps and Income on Household Food Expenditures," Technical Bulletins 157026, United States Department of Agriculture, Economic Research Service.
    6. Joseph Harkness & Sandra J. Newman, 2002. "The Interactive Effects of Housing Assistance and Food Stamps," JCPR Working Papers 272, Northwestern University/University of Chicago Joint Center for Poverty Research.
    7. Allen, Joyce E. & Newton, Doris Epson, 1986. "Existing Food Policies And Their Relationship To Hunger And Nutrition," 1986 Annual Meeting, July 27-30, Reno, Nevada 278490, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Philip M. Gleason & Anu Rangarajan & Christine Olson, "undated". "Dietary Intake and Dietary Attitudes Among Food Stamp Participants and Other Low-Income Individuals," Mathematica Policy Research Reports 7de7096e094445cba404d4e97, Mathematica Policy Research.
    9. David Sahn & Ari Gerstle, 2004. "Child allowances and allocative decisions in Romanian households," Applied Economics, Taylor & Francis Journals, vol. 36(14), pages 1513-1521.
    10. Harkness, Joseph & Newman, Sandra, 2003. "The interactive effects of housing assistance and food stamps on food spending," Journal of Housing Economics, Elsevier, vol. 12(3), pages 224-249, September.
    11. Ranney, Christine K. & Gomez, Miguel I., 2010. "Food Stamps, Food Insufficiency and Health of the Elderly," Working Papers 126968, Cornell University, Department of Applied Economics and Management.
    12. repec:mpr:mprres:2567 is not listed on IDEAS
    13. Janet Currie, 2003. "US Food and Nutrition Programs," NBER Chapters, in: Means-Tested Transfer Programs in the United States, pages 199-290, National Bureau of Economic Research, Inc.
    14. Pan, Suwen & Jensen, Helen H., 2008. "Does the Food Stamp Program Affect Food Security Status and the Composition of Food Expenditures?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 21-35, April.
    15. Levedahl, J. William, 1991. "The Role of Functional Form in Estimating the Effect of a Cash-Only Food Stamp Program," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 43(02), pages 1-9.

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