Journal of Economic Perspectives: Vol. 10 No. 2 (Spring 1996)


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Policy Watch: The Food Stamp Program and Welfare Reform

Article Citation

Kuhn, Betsey A., Pamela Allen Dunn, David Smallwood, Kenneth Hanson, Jim Blaylock, and Stephen Vogel. 1996. "Policy Watch: The Food Stamp Program and Welfare Reform." Journal of Economic Perspectives, 10(2): 189-198.

DOI: 10.1257/jep.10.2.189


Major changes have been proposed for the Food Stamp Program, including replacing the program with block grants to the states, cashing out the benefits, and reducing program funding from baseline levels. This paper will explore the impacts of food stamp reform on food spending, income support, welfare reform, agriculture, and the rest of the economy. A comprehensive set of scenarios is used to examine the potential economic consequences. The analysis shows that the effect of cashing out the Food Stamp Program can be as much as four times larger than the effects of program reduction alone.

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Kuhn, Betsey A. (USDA)
Dunn, Pamela Allen (U MD at College Park)
Smallwood, David (USDA)
Hanson, Kenneth (USDA)
Blaylock, Jim (USDA)
Vogel, Stephen (USDA)

JEL Classifications

I38: Welfare and Poverty: Government Programs; Provision and Effects of Welfare Programs


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