Cash Vs. Food Stamps Term Paper by Jay Writtings LLC

Cash Vs. Food Stamps
A critical examination of the food stamp program in the United States.
# 119845 | 2,106 words | 5 sources | APA | 2010 | US

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Using the tools of consumer theory, the paper examines the food stamp program in relation to a cash incentive program. The paper attempts to determine whether the cash transfers lead to consumers being on a higher or similar utility curve when compared to the utility curve from food stamps. The paper comes to the conclusion that when compared to cash transfers, in-kind transfers are inferior. The paper includes graphs and a chart as appendices to the paper.

Modeling the Superiority of Cash Payments to In-Kind Transfers
Consumer Theory
Why are Governments Engaging In a Less Efficient Outcome: Should the Government Be Issuing Cash?
Understanding the Dominance of In-Kind Transfers: A Case Study of Fiscal Year 2008 United States Federal Budget

From the Paper:

"In 2002, the U.S. Department of Agriculture distributed $19.1 billion in food stamps and spent an additional $2.4 billion dollars on administration related to foods stamps. Food Stamps are one of the largest welfare programs in many developed (and increasingly developed countries). The annual cost of the program is now approaching $24 billion - and is intended to help low-income families purchase nutritious food. There are over 8 million households who receive foods stamps at an average of $79 per person and $950 per year, (Hobbs, 2004, p 1). This is a rather expansive program, which has many proposed economic benefits for the society. However, using the tools of consumer theory, the food stamp program will be examined in relation to a cash incentive program."

Sample of Sources Used:

  • Hobbs, J. (2004). Food Stamps: Results are More Important than Intentions. American Institute for Full Employment. Spring. Retrieved on April 4, 2007 from
  • Hausman, D. and McPherson, M. (1997). Beware of Economists Bearing Advice. Policy Options (18), 7, September, 16-19.
  • Lecture 7 (2003). In Kind Transfers, Food Stamps, and the Whitmore Study. Massachusetts Institute of Technology Course Offering. Retrieved on April 4, 2007 from
  • New York City Coalition Against Hunger (n.d.). Ten Myths About Food Stamps. New York City Coalition Against Hunger. Retrieved on April 4, 2007 from
  • Varian, H. (1992). Microeconomic Analysis. New York: W.W. Norton and Company.

Cite this Term Paper:

APA Format

Cash Vs. Food Stamps (2010, May 26) Retrieved December 03, 2021, from

MLA Format

"Cash Vs. Food Stamps" 26 May 2010. Web. 03 December. 2021. <>