Consumption Responses to In-Kind Transfers: Evidence from the Introduction of the Food Stamp Program
Diane Whitmore Schanzenbach, Hilary Hoynes
food stamps, safety net
Applied Economic Journal: Applied Economics
This paper has policy implications for food stamp and social safety net policy, studying the impacts on consumption from in-kind transfer program. Their findings are consistent with theoretical predictions, leading to a decrease in out-of-pocket food spending and an increase in overall food expenditures. They also find that households respond similarly to a dollar in cash income and a dollar in food stamps. Households that are constrained experienced larger impacts in food consumption than unconstrained households.