THE IMPACT OF FOOD STAMPS ON US POVERTY IN THE 1980S - A MARGINAL DOMINANCE ANALYSIS

The relative effectiveness of the US Food Stamp Program in reducing th e incidence and depth of poverty is compared at a number of poverty li nes across time. The analysis is based upon an extension of dominance methods for ordering poverty, recently developed statistical inference procedures, and a merged data-set that permits an unusually comprehen sive measure of income. The comparative effectiveness of the Food Stam p Program in reducing headcount poverty over time is contingent on the poverty line selected. However, the reduction in poverty gaps is grea ter in 1990 than in 1982, regardless of the poverty line chosen. The s ensitivity of the results to the income concept, equivalence scale and time period used for measuring income are also considered.