Essay

In their study on the impact of healthy food vouchers, Griffiths, Von Hinke and Smith (2015) make the following statement:

“We show that the way in which the vouchers affected spending was fully in line with the predictions of standard economic analysis. That is, there was a large effect on spending among a subset of recipient households who were distorted. For other, infra-marginal households, the effect was similar to an incomeequivalent cash benefit”

Discuss this statement using relevant intermediate microeconomic theory and appropriate diagrams.

To what extent are the findings in Griffths, Von Hinke and Smith (2015) consistent with other research evidence on the impact of labelling on either cash or in-kind transfers?

Task Details/Description: 

1000-word essay (references and footnotes are not included in this words count).