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EXPLAINING THE FOOD STAMP CASH-OUT PUZZLE AgEcon
Breunig, Robert; Dasgupta, Indraneel; Gundersen, Craig; Pattanaik, Prasanta.
Empirical studies have shown that food stamp participants spend a higher proportion of their benefit on food than they would with an equivalent amount of cash. Our study demonstrates that this result can be explained by the decision-making behavior of multi-adult households. Multi-adult households spend a higher proportion of their food stamp benefit than they would with an equivalent amount of cash. In contrast, single-adult households show little difference in food spending between food stamps and an equivalent amount of cash. Because over 30 percent of food stamp participants are in multi-adult households, switching from food stamps to cash may reduce food purchases of these needy households. If that is indeed the case, the use of food stamps and other...
Tipo: Report Palavras-chave: Food Stamp Program; Cash transfers; Cash-out puzzle; Welfare stigma; Cournot model; Intra-household distribution; Engel curves; Food Consumption/Nutrition/Food Safety; Food Security and Poverty.
Ano: 2001 URL: http://purl.umn.edu/33869
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