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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]

dc.contributor.authorBreunig, Robert
dc.contributor.authorDasgupta, Indraneel
dc.date.accessioned2002-05-02
dc.date.accessioned2004-05-19T09:30:42Z
dc.date.accessioned2011-01-05T08:30:11Z
dc.date.available2004-05-19T09:30:42Z
dc.date.available2011-01-05T08:30:11Z
dc.date.created1999
dc.identifier.issn1477-9552
dc.identifier.urihttp://hdl.handle.net/1885/40496
dc.identifier.urihttp://digitalcollections.anu.edu.au/handle/1885/40496
dc.description.abstractLevedahl (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, even for households who spend some cash income on food. We question the claim that stigma explains the cash-out puzzle. We develop a theoretical model to show that marginal welfare stigma is not sufficient to generate the puzzle, and use it to identify the restrictions imposed by the hypothesis that the puzzle is indeed caused by such stigma. Estimates from Engel curves using parametric and nonparametric methods are shown to be inconsistent with the stigma hypothesis.
dc.format.extent228449 bytes
dc.format.mimetypeapplication/pdf
dc.language.isoen_AU
dc.publisherWiley-Blackwell
dc.sourceJournal of Agricultural Economics
dc.subjectFood Stamp Program
dc.subjectCash Transfers
dc.subjectCash-out Puzzle
dc.subjectMarginal Welfare
dc.subjectStigma
dc.subjectEngel Curves.
dc.titleAre People Ashamed of Paying with Food Stamps
dc.typeWorking/Technical Paper
local.description.refereedno
local.identifier.citationmonthnov
local.identifier.citationvolume54
local.identifier.citationyear1999
local.identifier.eprintid303
local.rights.ispublishedyes
local.identifier.absfor140201 - Agricultural Economics
local.identifier.ariespublicationMigratedxPub14766
local.type.statusPublished Version
local.contributor.affiliationSchool of Economics
local.contributor.affiliationANU
local.citationWorking Papers in Economics and Econometrics No.382
local.bibliographicCitation.issue2
local.bibliographicCitation.startpage203
local.bibliographicCitation.lastpage225
dc.date.updated2015-12-12T08:07:39Z
local.identifier.scopusID2-s2.0-0042014376
CollectionsANU Research Publications

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