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Abstract

The U.S. Department of Commerce 1967 input-output model was adjusted and used to determine the economic impact of expenditures of bonus stamps by food stamp households for calendar year 1972 and fiscal year 1974. In addition, the impact under the bonus stamp provision was compared with the alternative of giving participants an equal amount of cash. Economic impact was measured in terms of changes in business receipts, gross national product, and jobs. In each example, the amount required to fund bonus stamps or the cash grant was obtained by increasing the Federal personal income taxes of taxpayers and reducing their expenditures by an equivalent amount prior to the transfer of bonus stamps or cash to participants. For this reason, the results obtained represent net impact.

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