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

نویسندگان

  • Timothy K.M. Beatty
  • Charlotte Tuttle
چکیده

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 find 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 benefits due to the implementation of the American Recovery and Reinvestment Act affects food–at–home expenditure. We find 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 find our results are unique to the ARRA implementation time period.

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تاریخ انتشار 2012