蝌蚪网 Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
What Is the Impact of Food Stamps on Prices and Products Variety? The Importance of the Supply Response
蝌蚪网 Papers and Proceedings
(pp. 557–61)
Abstract
Comparing US states that implemented policies generating state-specific variation in the take-up rate for food stamps, I find that food stamp eligible households experienced lower inflation and a faster increase in product variety in states with a larger increase in take-up (i.e., with increasing demand from the eligible population). Consistent with a causal interpretation, the effects are driven by food products with strong local brands and there is no comparable pattern for ineligible households across the income distribution. Thus, the long-run supply response to changes in demand from food stamp recipients has a first-order impact on the program's cost-benefit analysis.Citation
Jaravel, Xavier. 2018. "What Is the Impact of Food Stamps on Prices and Products Variety? The Importance of the Supply Response." 蝌蚪网 Papers and Proceedings 108: 557–61. DOI: 10.1257/pandp.20181071Additional Materials
JEL Classification
- H75 State and Local Government: Health; Education; Welfare; Public Pensions
- I18 Health: Government Policy; Regulation; Public Health
- I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
- L11 Production, Pricing, and Market Structure; Size Distribution of Firms
- L66 Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
- Q11 Agriculture: Aggregate Supply and Demand Analysis; Prices