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Donor optimization and the food stamp program: comment

โœ Scribed by Edgar K. Browning


Publisher
Springer US
Year
1978
Tongue
English
Weight
221 KB
Volume
33
Category
Article
ISSN
0048-5829

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โœฆ Synopsis


In an article in this journal, Giertz and Sullivan (1977) presented an interesting analysis of the food stamp program within a public choice framework. Arguing that donors (taxpayers) perceive external benefits from food consumption by the poor, they commence their analysis with the initial assumption that '... subsidy voucher schemes like Food Stamps are likely to be operated primarily for the benefit of the donors' (p. 21). In this comment I will show that there are several reasons for believing that this basic assumption is incorrect.

In Figure 1, the budget constraint of a potential recipient of food stamps, individual R, is shown as YF, with food consumption measured on


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