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Crowding-out effect of the current food stamp subsidy scheme

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  • Zhang, Yi

Abstract

We construct a model to illustrate that the current food stamp subsidy scheme fails to achieve its stated aim due to the crowding-out effect. More specifically, if the household income is sufficiently low, only a corner solution exists, and a full subsidy is needed.

Suggested Citation

  • Zhang, Yi, 2011. "Crowding-out effect of the current food stamp subsidy scheme," Economics Letters, Elsevier, vol. 112(1), pages 1-2, July.
    • Handle: RePEc:eee:ecolet:v:112:y:2011:i:1:p:1-2
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    References listed on IDEAS

    as
    1. Hilary W. Hoynes & Diane Whitmore Schanzenbach, 2009. "Consumption Responses to In-Kind Transfers: Evidence from the Introduction of the Food Stamp Program," American Economic Journal: Applied Economics, American Economic Association, vol. 1(4), pages 109-139, October.
    2. Janet Currie & Firouz Gahvari, 2008. "Transfers in Cash and In-Kind: Theory Meets the Data," Journal of Economic Literature, American Economic Association, vol. 46(2), pages 333-383, June.
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