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

Policy Summary

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.

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