Consumption Responses to In-Kind Transfers: Evidence from the Introduction of the Food Stamp Program

Hilary Hoynes and Diane Schanzenbach

American Economic Journal: Applied Economics, 2009, vol. 1, issue 4, 109-39

Abstract: Economists have strong theoretical predictions about how in-kind transfers, such as providing vouchers for food, impact consumption. Despite the prominence of the theory, there is little empirical work on responses to in-kind transfers, and most existing work fails to support the canonical theoretical model. We employ difference-indifference methods to estimate the impact of program introduction on food spending. Consistent with predictions, we find that food stamps reduce out-of-pocket food spending and increase overall food expenditures. We also find that households are inframarginal and respond similarly to one dollar in cash income and one dollar in food stamps. (JEL D12, H23, I38)

JEL-codes: D12 H23 I38 (search for similar items in EconPapers)
Date: 2009
Note: DOI: 10.1257/app.1.4.109
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Citations: View citations in EconPapers (224)

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Related works:
Working Paper: Consumption Reponses to In-Kind Transfers: Evidence from the Introduction of the Food Stamp Program (2007)
Working Paper: Consumption Responses to In-Kind Transfers: Evidence from the Introduction of the Food Stamp Program (2007)
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