THE EFFECT OF FUNCTIONAL FORM ON THE ESTIMATED MARGINAL PROPENSITIES TO SPEND OUT OF FOOD STAMPS AND MONEY INCOME AND THE IMPLICATIONS FOR A CASH-ONLY FOOD STAMP PROGRAM

Using linear in the coefficients specifications (LCS), previous estimates of the marginal propensity to spend on food out of food stamps are about 4 to 5 times the MPS out of income. This magnitude implies that food expenditures would fall drastically if the program was cashed-out. The LCS and a specification of the expenditure equation based on a generalization of Roy's identity and a translog indirect utility function are estimated. The implications of these functional forms on cashing-out the Food Stamp Program are discussed.


Issue Date:
Aug 05 1990
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/270908
Language:
English
Total Pages:
27




 Record created 2018-04-06, last modified 2020-10-28

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