Discussion paper

Welfare transfers and intra-household trickle down: a model with evidence from the US food stamp program

Housing Food industry and trade Welfare state Welfare recipients Australia
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This paper examines the case for maintaining welfare and income redistribution programs even when their adverse general equilibrium effects reduce total earnings of poor households. Using a Cournot model of intra-household decision-making, the authors show that even if welfare cutbacks generate large increases in household income, these may still reduce the well-being of children and elderly dependants.

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