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The Estimation Of Food Stamp Self-Selection Models Using The Method Of Simulation

Author

Listed:
  • Keane, Michael
  • Moffitt, Robert

Abstract

Much research sponsored by the Department of Agriculture's Food and Nutrition Service (FNS) has evaluated the effects of the Food Stamp Program (FSP) and other food and nutrition programs on outcomes of interest (e.g., dietary intake or food expenditures). Of course, the problem of "self-selection" frequently arises in evaluations of assistance programs in general and in analyses of food and nutrition programs in particular. This report addresses the phenomenon of self-selection in the context of multiple programs. For example, to study the effect of the FSP on the food expenditures of households headed by a single woman, one must also control for the effects of Aid to Families with Dependent Children (AFDC), since so many female heads receive both food stamps and AFDC. As we will show, recently developed techniques of "simulation estimation" make it feasible to deal with selection in the context of multiple programs.

Suggested Citation

  • Keane, Michael & Moffitt, Robert, 1992. "The Estimation Of Food Stamp Self-Selection Models Using The Method Of Simulation," MPRA Paper 55138, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:55138
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    References listed on IDEAS

    as
    1. McFadden, Daniel, 1989. "A Method of Simulated Moments for Estimation of Discrete Response Models without Numerical Integration," Econometrica, Econometric Society, vol. 57(5), pages 995-1026, September.
    2. Fraker, Thomas & Moffitt, Robert, 1988. "The effect of food stamps on labor supply : A bivariate selection model," Journal of Public Economics, Elsevier, vol. 35(1), pages 25-56, February.
    3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    4. Pakes, Ariel & Pollard, David, 1989. "Simulation and the Asymptotics of Optimization Estimators," Econometrica, Econometric Society, vol. 57(5), pages 1027-1057, September.
    5. Barbara Devaney & Robert Moffitt, 1991. "Dietary Effects of the Food Stamp Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(1), pages 202-211.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Method of simulated moments; sample selection; simulation estimation; multivariate probit; foodstamps;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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