Expenditure Response to Increases in In‐Kind Transfers: Evidence from the Supplemental Nutrition Assistance Program

Autor: Charlotte Tuttle, Timothy K.M. Beatty
Rok vydání: 2014
Předmět:
Zdroj: American Journal of Agricultural Economics. 97:390-404
ISSN: 1467-8276
0002-9092
DOI: 10.1093/ajae/aau097
Popis: Recent studies on food stamp participant households’ marginal propensity to spend out of food stamps versus income have had contradictory results: experimental studies have found household behavior aligns with standard economic theory where households’ marginal propensity to spend on food out of food stamps is equivalent to cash income; observational studies nd that households have a larger marginal propensity to spend out of food stamps than cash income. In this study, we re{examine this question by estimating how an unprecedentedly large increase in food stamp benets due to the implementation of the American Recovery and Reinvestment Act aects food{at{home expenditure. We nd that the policy change caused households to increase food{at{home expenditure as well as increase households’ share of total expenditure allocated toward food{at{home expenditure. We compare these results to a time period without a meaningful food stamp policy change and nd our results are unique to the ARRA implementation time period.
Databáze: OpenAIRE