The Effect of the Food Stamp Program on the Nutrient Intake of the Eligible Elderly

An objective of the Food Stamp Program, recognized in its originating legislation, is to increase the nutrient intake of the poor. Economic theory suggests this might be achieved through income effects and program-related effects. This paper, using data from the Food Stamp Cashout Project, tests the effectiveness of food stamps and direct cash transfers in achieving this goal for a sample of elderly households. Food Stamp Program effects were negligible, and nutrient intake did not increase with income in either program. Controlling for the endogeneity of participation with a selection bias technique did not affect these results.