Abstract
Food stamp participants have higher food insufficiency rates than eligible nonparticipants, even after controlling for other factors. Given the Food Stamp Program's prominent role in the alleviation of hunger, this is a counterintuitive result. We conjecture that these higher rates are due to adverse selection insofar as households more likely to be food insufficient are also more likely to receive food stamps. We establish a theoretical framework to address this adverse selection. Using a simultaneous equation model with two probits, we show that once one controls for this adverse selection, food stamp recipients have the same probability of food insufficiency as nonrecipients.
Original language | English (US) |
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Pages (from-to) | 875-887 |
Number of pages | 13 |
Journal | American Journal of Agricultural Economics |
Volume | 83 |
Issue number | 4 |
DOIs | |
State | Published - 2001 |
Externally published | Yes |
Keywords
- Food insecurity
- Food insufficiency
- Food stamps
- Simultaneous equation models
ASJC Scopus subject areas
- Agricultural and Biological Sciences (miscellaneous)
- Economics and Econometrics