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ECONOMIC INCENTIVES FOR DIETARY IMPROVEMENT AMONG FOOD STAMP RECIPIENTS
Author(s) -
LIN BIINGHWAN,
YEN STEVEN T.,
DONG DIANSHENG,
SMALLWOOD DAVID M.
Publication year - 2010
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.2009.00193.x
Subject(s) - food stamp program , subsidy , food stamps , consumption (sociology) , economics , incentive , agricultural economics , marginal propensity to consume , supplemental nutrition assistance program , food prices , business , agriculture , food insecurity , food security , finance , geography , sociology , market liquidity , microeconomics , social science , archaeology , welfare , market economy
Most Americans need to consume more fruits, vegetables, and dairy products. This need is particularly acute among low‐income individuals. This study examines the cost‐effectiveness of two economic policies that use alternative policy levers available within the Supplemental Nutrition Assistance Program (formerly Food Stamp Program) to increase consumption of these under‐consumed foods. Data from three nationally representative surveys are used to estimate demand elasticities, marginal propensity to spend on food out of food stamp benefits, and consumption amount of and spending on under‐consumed foods among food stamp recipients. Results suggest that a 10% price subsidy would curtail consumption deficiencies by 4%–7% at an estimated cost of $734 million a year. When the same $734 million is used to finance food stamp benefits, consumption deficiencies are predicted to narrow by only 0.35%–0.40%. ( JEL C34, D12, Q18)