ECONOMIC INCENTIVES FOR DIETARY IMPROVEMENT AMONG FOOD STAMP RECIPIENTS |
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| Authors: | BIING‐HWAN LIN STEVEN T. YEN DIANSHENG DONG DAVID M. SMALLWOOD |
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| Affiliation: | 1. Lin: Agricultural Economist, Economic Research Service, U.S. Department of Agriculture, Washington, DC 20036‐5831. Phone 202‐694‐5458, Fax 202‐694‐5688, E‐mail blin@ers.usda.gov;2. Yen: Associate Professor, Department of Agricultural Economics, The University of Tennessee, Knoxville, TN 37996‐4518. Phone 865‐974‐7474, Fax 865‐974‐4829, E‐mail syen@utk.edu;3. Dong: Agricultural Economist, Economic Research Service, U.S. Department of Agriculture, Washington, DC 20036‐5831. Phone 202‐694‐5422, Fax 202‐694‐5662, E‐mail ddong@ers.usda.gov;4. Smallwood: Deputy Director for Food Assistance Research, Economic Research Service, U.S. Department of Agriculture, Washington, DC 20036‐5831. Phone 202‐694‐5466, Fax 202‐694‐5677, E‐mail dsmallwd@ers.usda.gov;5. An earlier version of this paper was presented at the Southern Economic Association Annual Meeting, Washington, DC, November 2008. Research was supported by USDA‐ERS Cooperative Agreements nos 58‐5000‐7‐0123 and 43‐3AEM‐2‐80063. The views in this paper are those of the authors and do not necessarily reflect the views or policies of the U.S. Department of Agriculture. The authors benefited from helpful comments by David B. Eastwood and Travis A. Smith. The usual disclaimers apply. |
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| Abstract: | 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) |
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