Food Stamps and the Market Demand for Food

This article compares estimates of disaggregated market food demand responses to the Supplemental Nutrition Assistance Program benefits based on exact nonlinear aggregation to responses based on linear aggregation. By accounting for income inequality, nonlinear aggregation implies that only the hous...

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Bibliographic Details
Published in:American journal of agricultural economics 2010-10, Vol.92 (5), p.1392-1400
Main Authors: Reed, Albert J., Levedahl, J. William
Format: Article
Language:English
Subjects:
Aggregation
Agricultural and food market
Agricultural economics
AIDS
Cash
Cash income
Comparative analysis
Data aggregation
Demand
Demand analysis
Economic models
Elasticity of demand
Electronics benefit transfer
exact aggregation
food assistance policy
Food consumption
Food demand
Food prices
Food stamps
Food supply
Households
Housing demand
Income estimates
Income inequality
Market demand
market food demand
Nutrition
Q11
Q18
SNAP
Studies
U.S.A
Welfare policy
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Summary:This article compares estimates of disaggregated market food demand responses to the Supplemental Nutrition Assistance Program benefits based on exact nonlinear aggregation to responses based on linear aggregation. By accounting for income inequality, nonlinear aggregation implies that only the households that receive benefits contribute to market demand responses. In contrast, linear aggregation presumes all households receive benefits and thus contribute to the market demand response. The consequence is that nonlinear market estimates are smaller than the linear estimates by roughly the fraction of households that receive benefits.
ISSN:0002-9092
1467-8276
DOI:10.1093/ajae/aaq069