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Equivalent Scales, Scale Economies, and Food Stamp Allotments: Estimates from the Nationwide Food Consumption Survey, 1977–78

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  • Mark G. Brown
  • S. R. Johnson

Abstract

Allotment and economy-of-scale adjustments are important in determining benefit levels for households participating in the Food Stamp Program. Economy-of-scale factors adjust levels of benefits based on the sizes of participating households. These economy-of-scale factors and the allotment are calculated currently using diet status, income, and household size. This paper shows that food stamp allotments for different household sizes can be determined independent of diet status using standard demand theory and the age-sex composition of the household. The results indicate that scale adjustments now used are related more to household composition than true economies.

Suggested Citation

  • Mark G. Brown & S. R. Johnson, 1984. "Equivalent Scales, Scale Economies, and Food Stamp Allotments: Estimates from the Nationwide Food Consumption Survey, 1977–78," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 286-293.
    • Handle: RePEc:oup:ajagec:v:66:y:1984:i:3:p:286-293.
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    Cited by:

    1. Lee, Jonq-Ying, 1986. "Imputed Missing Incomes And Marginal Propensity To Consume Food," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 11(2), pages 1-8, December.
    2. Wenying Li & Jeffrey H. Dorfman, 2021. "Intrahousehold Economies of Scale with Application to Food Assistance and Work Incentive Programs," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1251-1267, August.
    3. Lanfranco, Bruno A. & Ames, Glenn C.W. & Huang, Chung L. & Stegelin, Forrest E., 2001. "Wic And The Demand For Food By The Hispanic Community In The United States," Journal of Food Distribution Research, Food Distribution Research Society, vol. 32(1), pages 1-12, March.
    4. Blaylock, James R., 1991. "The Impact Of Equivalence Scales On The Analysis Of Income And Food Spending Distributions," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(1), pages 1-10, July.

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