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How Does the Supplemental Nutrition Assistance Program Affect the U.S. Economy?

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  • Reimer, Jeffrey J.
  • Weerasooriya, Senal
  • West, Tyler T.

Abstract

The impact of the Supplemental Nutrition Assistance Program (SNAP) on the national economy is examined using a general equilibrium model and comparing measures of the economy from 2010 to a simulation of that economy without SNAP. Without the SNAP program, the overall size of the economy hardly differs—demand for labor increases slightly. However, households that would be eligible for SNAP experience a net loss. They have 5.5 percent less disposable income while ineligible households have approximately 1 percent more income without SNAP, and output of products eligible for purchase with SNAP funds declines approximately one billion dollars.

Suggested Citation

  • Reimer, Jeffrey J. & Weerasooriya, Senal & West, Tyler T., 2015. "How Does the Supplemental Nutrition Assistance Program Affect the U.S. Economy?," Agricultural and Resource Economics Review, Cambridge University Press, vol. 44(3), pages 233-252, December.
    • Handle: RePEc:cup:agrerw:v:44:y:2015:i:03:p:233-252_00
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    1. Paul A. Lewin & Bruce A. Weber, 2020. "Distributional impacts of food assistance: How SNAP payments to the rural poor affect incomes in the urban core," Papers in Regional Science, Wiley Blackwell, vol. 99(5), pages 1281-1300, October.
    2. Weerasooriya, Senal A. & Reimer, Jeffrey J., 2016. "Effects of the Supplemental Nutrition Assistance Program on Rural and Urban Areas in Oregon," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235751, Agricultural and Applied Economics Association.
    3. Reimer, Jeffrey J. & Zheng, Xiaojuan, 2017. "Economic analysis of an aviation bioenergy supply chain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 945-954.
    4. Weerasooriya, Senal A. & Reimer, Jeffrey J., 2016. "General Equilibrium Analysis of the Farm Bill: SNAP versus Farm Programs," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236076, Agricultural and Applied Economics Association.
    5. An Li & Jeffrey J. Reimer, 2021. "The US Market for Agricultural Labor: Evidence from the National Agricultural Workers Survey," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(3), pages 1125-1139, September.

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