The economics of food stamps - the America's major food assistance program is investigated in order to answer the following questions: (1) whether malnutrition be solved by food supplements or cash allowances; (2) what the benefits to recipients are; (3) whether eligibility requirements permit participation by the needy and exclude higher income households; (4) why the participation in food assistance programs is as low as it is; and, (5) whether better nutrition programs are available. Chapter 1 examines the development of the existing food stamp policy under the Food Stamp Act of 1964 and subsequent amendments. Chapter 2 analyzes the economic costs of the food stamp program, taking into account the direct and indirect costs of both federal and non-federal food stamp organizations. Chapter 3 looks at the total benefits from the program, focusing particularly on the estimated relative gains to eligible recipients and the difficulty of determining program benefits. Chapter 4 discusses alternative solutions to the problem of malnutrition and suggests possible remedies. The final chapter gives the major conclusions and recommendations of the study. Twelve tables and figures are included. (Author/AM)