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Food Stamp Cashout Experiments, Food Expenditures and Undernutrition: A Distributional Analysis

John A. Bishop, John P. Formby and Lester A. Zeager

Working Papers from East Carolina University, Department of Economics

Abstract: Inference based dominance methods are applied to entire distributions of micro data from two food stamp cashout experiments in Alabama and San Diego, California. First-order dominance comparisons reveal no statistically significant differences between coupon and cash recipients in food expenditures, calories or protein in either location. Within the lowest income quintiles real incomes and protein are higher in San Diego, while real food expenditures and calories are higher in Alabama. Lorenz curves reveal substantial income inequality among FSP participants in each region, but associated concentration curves show that food expenditures, calories and proteins of individuals in income quintiles are much more equally distributed. Elasticities of calories and proteins reveal little nutrition response to income changes, especially in Alabama and at low income quintiles in San Diego.

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