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Impact of the Food Stamp Program on Three Local Economies: An Input-Output Analysis

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  • Matsumoto, Masao

Abstract

The study uses standard input-output analysis to assess the effect of the Food Stamp Program on the economies of three rural counties. Economic sectors in the counties are delineated and the degree of their interdependence is determined. The food retailing, local government, and import sectors are given special attention. A change in the economy -- that is, the Food Stamp Program -- is then measured for its effect on increased output and employment. For every dollar of Food Stamp Program expenditure, output in Haywood County, Tenn., increased by $1.20 to $1.26. Total county program expenditures for 1970 -- at over $1.2 million -- were estimated to have generated an additional $1.5 million of local economic activity. This increase had the potential of creating 60 new man-years of employment. Similar analysis was done for Appanoose County, Iowa, and Chaves County, N. Mex., and revealed corresponding output increases of $1.37 to $1.42 and $1.65 to $1 .68, respectively.

Suggested Citation

  • Matsumoto, Masao, 1972. "Impact of the Food Stamp Program on Three Local Economies: An Input-Output Analysis," Miscellaneous Publications 324156, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersmp:324156
    DOI: 10.22004/ag.econ.324156
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    File URL: https://ageconsearch.umn.edu/record/324156/files/ERS-503.pdf
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    Cited by:

    1. Unknown, 1978. "The Food Stamp Program: A Review of Selected Economic Studies," Economics Statistics and Cooperative Services (ESCS) Reports 143229, United States Department of Agriculture, Economic Research Service.

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