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Food Stamp Program Impact on Resource Use: Texas Compared with The U.S., Fiscal Year 1974*

Published online by Cambridge University Press:  28 April 2015

Paul E. Nelson Jr.  and
John Perrin
Paul E. Nelson Jr.
Affiliation:
Economic Research Service, U.S. Department of Agriculture
John Perrin
Affiliation:
Division of Planning Coordination, Office of the Governor, Austin, Texas
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Extract

During fiscal year 1974 the National Food Stamp Program disbursed $2.7 billion in bonus stamps. Of this amount, Texas received about $208 million. These money injections will increase each economy's final demand, ceteris paribus.

However, an increase in the final demand of low income households will result in a discernibly different pattern of resource allocation than would occur if it came from high income households: the larger the increase in final demand, the greater the impact on patterns of resource use. The amount of bonus stamps distributed has reached a point where impacts may be identifiable.

The source of funds likewise affects such expenditure patterns and resulting resource use. For example, when funds for bonus stamps are raised by increasing taxes of the higher income households, their expenditure patterns will reflect their increased tax payments. In contrast, when funds are raised by sale of government securities, the immediate impact will be different, in part because individuals account for only about 16 percent of the ownership of all federal securities.

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 9 , Issue 2 , December 1977 , pp. 81 - 87
Copyright
Copyright © Southern Agricultural Economics Association 1977

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Footnotes

*

Thanks to the following colleagues for their constructive comments: Gar Forsht, Alden Manchester, Bill Boehm, Masao Matsumoto, Gerald Schluter, FNS/ERS, USDA, and Herbert Grubb, Water Development Board, Governor's Office, Austin, Texas. The comments of unknown reviewers are also appreciated. Views expressed do not necessarily represent those of either the U.S. Department of Agriculture or the State of Texas.

References

[1[ Grubb, Herbert. The Structure of the Texas Economy: Input-Output Analysis, Volume 1, Office of the Governor, Austin, Texas, 1973.Google Scholar
[2[ Nelson, Paul E. Jr. and Perrin, John. Economic Effects of the U.S. Food Stamp Program—Calendar Year 1972 and Fiscal Year 1974. Agricultural Economic Report 331, ERS, USDA, Washington, D.C., July 1976.Google Scholar
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[4[ Nelson, Paul E. Jr. and Perrin, John. “Technical Supplement to Analysis of the Economic Impacts of the U.S. Food Stamp and School Lunch Programs,” ERS, NEAD, U.S. Department of Agriculture, Washington, D.C., July 1976.Google Scholar
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