Economic Evaluation of the Farmers' Market Nutrition Program

Abstract

A framework is developed to evaluate food assistance programs and is applied to the Farmers' Market Nutrition Program—a program intended to increase consumption of fresh fruits and vegetables (F…V) by providing coupons and information. Because individuals differ, some coupons are unused, some replace existing consumption and simply enhance income, and some induce increased consumption. Results show that coupons alone reduce social welfare because recipients value F…V less than society. However, when coupons are used as a lure to distribute information, demand increases. In a household production framework the program is shown to enhance social welfare by correcting a market failure.