INTRAHOUSEHOLD ALLOCATION IN POOR U.S. HOUSEHOLDS

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DESCRIPTION (provided by applicant): School nutrition programs represent an important part of the safety net for poor American households. Previous evaluations have shown decidedly mixed or little effects of these programs on the consumption of children. Such results taken at face value could cast significant doubt on the effectiveness of the school nutrition programs. At the same time, many theoretical and empirical studies have examined the allocation of resources within households. Such studies suggest the possibility that programs targeted at some household members could impact other family members by freeing up resources for their consumption. No study has examined how school nutrition programs impact the consumption of other household members, and thus some of the real, positive impacts are potentially being overlooked. More generally, it is of significant interest to understand how poor households share their limited resources among family members. The case of school nutrition programs presents a unique opportunity to observe how transfers to children alter family consumption patterns. To better understand the impact of school nutrition programs and the allocation of resources within households, we propose to answer two questions: (a) What is the impact of school nutrition programs on children and parents? and (b) What is the implied sharing rule for food resources between children and parents? To answer these questions we will use the National Health and Nutritional Examination Survey (NHANES) III and IV. These are nationally representative data sets that contain detailed information on food consumption, a complete clinical exam, and a laboratory report for each respondent, as well as typical economic and demographic information for the families.