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- Title
Food Stamps and the Market Demand for Food.
- Authors
Reed, Albert J.; Levedahl, J. William
- Abstract
This article compares estimates of disaggregated market food demand responses to the Supplemental Nutrition Assistance Program benefits based on exact nonlinear aggregation to responses based on linear aggregation. By accounting for income inequality, nonlinear aggregation implies that only the households that receive benefits contribute to market demand responses. In contrast, linear aggregation presumes all households receive benefits and thus contribute to the market demand response. The consequence is that nonlinear market estimates are smaller than the linear estimates by roughly the fraction of households that receive benefits.
- Subjects
SUPPLY &; demand; FOOD stamps; FOOD marketing; FOOD relief; INCOME inequality; HOUSEHOLDS; GOVERNMENT policy
- Publication
American Journal of Agricultural Economics, 2010, Vol 92, Issue 5, p1392
- ISSN
0002-9092
- Publication type
Article
- DOI
10.1093/ajae/aaq069