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Project Citation: 

Jaravel, Xavier. Replication data for: What Is the Impact of Food Stamps on Prices and Products Variety? The Importance of the Supply Response. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-13. https://doi.org/10.3886/E114468V1

Project Description

Summary:  View help for Summary Comparing US states that implemented policies generating state-specific variation in the take-up rate for food stamps, I find that food stamp eligible households experienced lower inflation and a faster increase in product variety in states with a larger increase in take-up (i.e., with increasing demand from the eligible population). Consistent with a causal interpretation, the effects are driven by food products with strong local brands and there is no comparable pattern for ineligible households across the income distribution. Thus, the long-run supply response to changes in demand from food stamp recipients has a first-order impact on the program's cost-benefit analysis.

Scope of Project

JEL Classification:  View help for JEL Classification
      H75 State and Local Government: Health; Education; Welfare; Public Pensions
      I18 Health: Government Policy; Regulation; Public Health
      I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
      L11 Production, Pricing, and Market Structure; Size Distribution of Firms
      L66 Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
      Q11 Agriculture: Aggregate Supply and Demand Analysis; Prices


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