 The Effect of Food Stamps and Income on Household Food ExpendituresJ. William Levedahl No 157026, Technical Bulletins from United States Department of Agriculture, Economic Research Service Abstract: This report, reexamining past estimates of tile effect of income and food stamp benefits on food expenditures, finds that a cash-only Food Stamp Program would result in a significant reduction in food expenditures, although smaller than suggested, by some previous results. Most prior studies found spending on food from marginal food stamp benefits to be several times greater than from marginal income, suggesting that cashing out the Food Stamp Program could greatly reduce food expenditures. The present study finds a 10-cent reduction in food spending for each dollar of food stamp benefits converted to a cash payment. Previous specifications of the-food expenditure equation plus one based on the translog specification are estimated using data·from the 1979-80 Nationwide Food Consumption Survey, Low Income Sample. In contrast to prior studies, the structural relationship of food stamp benefits to income is explicitly modeled. The report demonstrates that the functional form of the food expenditure equation was important in obtaining results previously reported. Keywords: Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; Food Security and Poverty (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:uerstb:157026 Access Statistics for this paper More papers in Technical Bulletins from United States Department of Agriculture, Economic Research Service Contact information at EDIRC. |
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