Abstract
AbstractEstimation of Food Stamp Program (FSP) effects has been complicated by self‐selection and by a contradiction between observed spending patterns and the economic theory of consumer choice. We developed a modified version of the traditional theory, in which participant households may be partly extramarginal even if they have some cash spending on at‐home food. Using Current Population Survey (CPS) data for 2001–2005, we estimated Engel functions for at‐home and away‐from‐home food spending for FSP participants and nonparticipants. Compared to nonparticipants with the same level of total income, participants had higher at‐home food spending and lower away‐from‐home food spending.
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