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Are People Ashamed of Paying with Food Stamps

Breunig, Robert; Dasgupta, Indraneel

Description

Levedahl (1995) claims that marginal 'welfare stigma' causes a dollar of food to provide less utility if bought with food stamps rather than cash, and that this explains why, in the United States, the marginal propensity to consume food out of food stamps is larger than that out of income. This hypothesis has been advanced to explain the so-called 'cash-out puzzle': the empirical observation that the marginal propensity to consume food out of food stamps is much higher than that out of income,...[Show more]

CollectionsANU Research Publications
Type: Working/Technical Paper
URI: http://hdl.handle.net/1885/40496
http://digitalcollections.anu.edu.au/handle/1885/40496
Source: Journal of Agricultural Economics

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