Food Stamps: An Economic Analysis

The first part of this paper points out that common criticisms of the food stamp program are based on weaknesses in the design of the existing program rather than on intrinsic problems of food stamp programs per se. Thus, they are acceptable as arguments for modification but not for abolishment of the food stamp program. However, the second part of the paper compares food stamps to an alternative, cash payments. Conditions are identified under which each program would be preferred, but it is concluded that the conditions favoring a food stamp program have not been shown to exist and that, furthermore, even if they do exist, a food stamp program may not be the most efficient policy response.