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American Economic Journal: Applied Economics: Vol. 1 No. 4 (October 2009)
AEJ: Applied Volume. 1, Issue 4 | 
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AEJ: Applied Forthcoming Articles
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AEJ: Applied Forthcoming Articles
Consumption Responses to In-Kind Transfers: Evidence from the Introduction of the Food Stamp Program
Article 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.1.4.109
DOI: 10.1257/app.1.4.109
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)
Article Full-Text Access
Full-text Article
Additional Materials
Download Data Set (9.88 MB) | Online Appendix (320.03 KB)
Authors
Hoynes, Hilary W. (U CA, Davis)
Schanzenbach, Diane Whitmore (U Chicago)
Schanzenbach, Diane Whitmore (U Chicago)
JEL Classifications
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
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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