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The Effect Of Functional Form On The Estimated Marginal Propensities To Spend Out Of Food Stamps And Money Income And The Implications For A Cash-Only Food Stamp Program

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  • Levedahl, J. William

Abstract

Using linear in the coefficients specifications (LCS), previous estimates of the marginal propensity to spend on food out of food stamps are about 4 to 5 times the MPS out of income. This magnitude implies that food expenditures would fall drastically if the program was cashed-out. The LCS and a specification of the expenditure equation based on a generalization of Roy's identity and a translog indirect utility function are estimated. The implications of these functional forms on cashing-out the Food Stamp Program are discussed.

Suggested Citation

  • Levedahl, J. William, "undated". "The Effect Of Functional Form On The Estimated Marginal Propensities To Spend Out Of Food Stamps And Money Income And The Implications For A Cash-Only Food Stamp Program," 1990 Annual meeting, August 5-8, Vancouver, Canada 270908, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea90:270908
    DOI: 10.22004/ag.econ.270908
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    References listed on IDEAS

    as
    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.
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    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), pages 1-9, July.
    6. Donald A. West & David W. Price, 1976. "The Effects of Income, Assets, Food Programs, and Household Size on Food Consumption," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(4_Part_1), pages 725-730.
    7. Ben Senauer & Nathan Young, 1986. "The Impact of Food Stamps on Food Expenditures: Rejection of the Traditional Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 37-43.
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    9. Huang, Chung L. & Fletcher, Stanley M. & Raunikar, Robert, 1981. "Modeling The Effects Of The Food Stamp Program On Participating Households' Purchases: An Empirical Application," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 13(2), pages 1-8, December.
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