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Do Intra-Household Effects Generate the Food Stamp Cash-Out Puzzle?

  • Robert Breunig
  • Indraneel Dasgupta

Previous empirical studies have noted the higher marginal propensity to consume food out of food stamps in the United States, compared to that out of cash income. Analyzing data from U.S. Food Stamp Program participants, we find evidence that this discrepancy may be driven primarily by the behavior of multiple-adult households. Single-adult households show no evidence of any discrepancy. Thus, our results suggest that food stamp and cash income (welfare or market) may have very different impact on the intra-household allocation process, and that this is reflected empirically in the cash-out puzzle. Copyright 2005, Oxford University Press.

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File URL: http://hdl.handle.net/10.1111/j.1467-8276.2005.00747.x
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Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 87 (2005)
Issue (Month): 3 ()
Pages: 552-568

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Handle: RePEc:oup:ajagec:v:87:y:2005:i:3:p:552-568
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  1. Robert V. Breunig & Indraneel Dasgupta, 2002. "A Theoretical and Empirical Evaluation of the Functiona Forms Used to Estimate the Food Expenditure Equation of Food Stamp Recipients: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1156-1160.
  2. Breunig & R. & Dasgupta, I., 1999. "Are People Ashamed of Paying with Food Stamps?," Papers 382, Australian National University - Department of Economics.
  3. Zhiqi Chen & Frances Woolley, 1999. "A Cournot-Nash Model of Family Decision Making," Carleton Economic Papers 99-13, Carleton University, Department of Economics, revised Oct 2001.
  4. Dasgupta, Indraneel, 2001. "Gender-biased redistribution and intra-household distribution," European Economic Review, Elsevier, vol. 45(9), pages 1711-1722, October.
  5. repec:mpr:mprres:1253 is not listed on IDEAS
  6. Chen, Zhiqi & Woolley, Frances, 2001. "A Cournot-Nash Model of Family Decision Making," Economic Journal, Royal Economic Society, vol. 111(474), pages 722-48, October.
  7. 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), July.
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