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 Originally Posted by wufwugy
I should correct this. The models and studies are mostly about the difference in consumption choices between using cash transfers or food stamps. The models suggest using food stamps (that can't be used on alc/cigs) instead of cash transfers (that can be used on alc/cigs) would unlikely have any impact on consumption of alc/cigs. This is because recipients of cash transfers will consume what they want evenly across their total cash, and recipients who get food stamps instead tend to move the alc/cigs consumption to their other cash and move more of their food consumption to food stamps.
Even as regulations get more stringent, the welfare recipients who are targeted specifically to not abuse the system tend to develop clever ways of getting around the rules. One way is trading their food stamps at a discount on the black market for alc/cigs/drugs/cash
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