American Economic Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
Consumption Responses to In-Kind Transfers: Evidence from the Introduction of the Food Stamp Program
American Economic Journal: Applied Economics
vol. 1,
no. 4, October 2009
(pp. 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)Citation
Hoynes, Hilary W., and Diane Whitmore Schanzenbach. 2009. "Consumption Responses to In-Kind Transfers: Evidence from the Introduction of the Food Stamp Program." American Economic Journal: Applied Economics, 1 (4): 109–39. DOI: 10.1257/app.1.4.109Additional Materials
JEL Classification
- D12 Consumer Economics: Empirical Analysis
- H23 Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- I38 Welfare and Poverty: Government Programs; Provision and Effects of Welfare Programs
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