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Modeling the Effects of the Food Stamp Program on Participating Households' Purchases: An Empirical Application

Published online by Cambridge University Press:  28 April 2015

Chung L. Huang ,
Stanley M. Fletcher  and
Robert Raunikar
Chung L. Huang
Affiliation:
Department of Agricultural Economics, University of Georgia College of Agriculture, Georgia Experiment Station, Experiment, Georgia
Stanley M. Fletcher
Affiliation:
Department of Agricultural Economics, University of Georgia College of Agriculture, Georgia Experiment Station, Experiment, Georgia
Robert Raunikar
Affiliation:
Department of Agricultural Economics, University of Georgia College of Agriculture, Georgia Experiment Station, Experiment, Georgia
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Extract

The present legal authority for the Food Stamp Program (FSP) is the Food and Agriculture Act of 1977. As adopted, the legislation includes a thorough overhaul of the FSP enacted into law in 1964. The FSP provides direct subsidies in the form of additional food dollars to low-income households to enhance the purchasing of nutritionally adequate diets. The most significant effect both on participating households and the food industry is the elimination of the purchase requirement whereby participants pay for food stamps. Under the new legislation, participants receive food stamps free of charge. The benefits received are roughly equivalent to the value of bonus stamps under the old program (Stucker and Boehm).

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 13 , Issue 2 , December 1981 , pp. 21 - 28
Copyright
Copyright © Southern Agricultural Economics Association 1981

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