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The Food Stamp Program and Food Insufficiency

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  • Craig Gundersen
  • Victor Oliveira

Abstract

Food stamp participants have higher food insufficiency rates than eligible nonparticipants, even after controlling for other factors. Given the Food Stamp Program's prominent role in the alleviation of hunger, this is a counterintuitive result. We conjecture that these higher rates are due to adverse selection insofar as households more likely to be food insufficient are also more likely to receive food stamps. We establish a theoretical framework to address this adverse selection. Using a simultaneous equation model with two probits, we show that once one controls for this adverse selection, food stamp recipients have the same probability of food insufficiency as nonrecipients. Copyright 2001, Oxford University Press.

Suggested Citation

  • Craig Gundersen & Victor Oliveira, 2001. "The Food Stamp Program and Food Insufficiency," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 875-887.
    • Handle: RePEc:oup:ajagec:v:83:y:2001:i:4:p:875-887
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    File URL: http://hdl.handle.net/10.1111/0002-9092.00216
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    References listed on IDEAS

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    1. Moffitt, Robert, 1983. "An Economic Model of Welfare Stigma," American Economic Review, American Economic Association, vol. 73(5), pages 1023-1035, December.
    2. Rose, Donald & Gunderson, Craig & Oliveira, Victor, 1998. "Socio-Economic Determinants of Food Insecurity in the United States: Evidence from the SIPP and CSFII Datasets," Technical Bulletins 184377, United States Department of Agriculture, Economic Research Service.
    3. Susan E. Mayer & Christopher Jencks, 1989. "Poverty and the Distribution of Material Hardship," Journal of Human Resources, University of Wisconsin Press, vol. 24(1), pages 88-114.
    4. repec:mpr:mprres:1682 is not listed on IDEAS
    5. Nancy Wemmerus & Kristin Porter, 1996. "An Ethnographic Analysis of Zero-Income Households in the Survey of Income and Program Participation," Mathematica Policy Research Reports fb85852141294588ad7dd0a27, Mathematica Policy Research.
    6. Rose, Donald & Gundersen, Craig & Oliveira, Victor, 1998. "Socio-Economic Determinants of Food Insecurity in the United States: Evidence from the SIPP and CSFII Datasets," Technical Bulletins 156812, United States Department of Agriculture, Economic Research Service.
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