IDEAS home Printed from https://ideas.repec.org/a/eee/jfpoli/v75y2018icp134-146.html
   My bibliography  Save this article

In-kind benefits and household behavior: The impact of SNAP on food-away-from-home consumption

Author

Listed:
  • Burney, Shaheer

Abstract

Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, provides in-kind benefits that can generally be utilized for Food At Home (FAH) only. According to economic theory, SNAP benefits are fungible with cash for inframarginal households which may allow participants to spend benefits on non-FAH items. However, empirical evidence for this theory is mixed. This paper exploits an underutilized source of state-level variation, the early-2000 s recession, to determine the impact of SNAP participation on household Food Away From Home (FAFH) consumption. In a difference in difference framework, I compare households in high post-recession SNAP growth states to households in low post-recession SNAP growth states. The results show that SNAP participation causes a significant decrease in FAFH expenditure and FAFH’s share of total food expenditure.

Suggested Citation

  • Burney, Shaheer, 2018. "In-kind benefits and household behavior: The impact of SNAP on food-away-from-home consumption," Food Policy, Elsevier, vol. 75(C), pages 134-146.
    • Handle: RePEc:eee:jfpoli:v:75:y:2018:i:c:p:134-146
    DOI: 10.1016/j.foodpol.2018.01.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030691921730550X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.foodpol.2018.01.010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pan, Suwen & Jensen, Helen H., 2008. "Does the Food Stamp Program Affect Food Security Status and the Composition of Food Expenditures?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(1), pages 1-15, April.
    2. Hilary W. Hoynes & Diane Whitmore Schanzenbach, 2009. "Consumption Responses to In-Kind Transfers: Evidence from the Introduction of the Food Stamp Program," American Economic Journal: Applied Economics, American Economic Association, vol. 1(4), pages 109-139, October.
    3. Robert Breunig & Indraneel Dasgupta, 2005. "Do Intra-Household Effects Generate the Food Stamp Cash-Out Puzzle?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 552-568.
    4. Justine Hastings & Jesse M. Shapiro, 2018. "How Are SNAP Benefits Spent? Evidence from a Retail Panel," American Economic Review, American Economic Association, vol. 108(12), pages 3493-3540, December.
    5. Unknown, 2004. "Effects Of Food Assistance And Nutrition Programs On Nutrition And Health: Volume 3, Literature Review," Food Assistance and Nutrition Research Reports 33863, United States Department of Agriculture, Economic Research Service.
    6. Heien, Dale & Durham, Cathy, 1991. "A Test of the Habit Formation Hypothesis Using Household Data," The Review of Economics and Statistics, MIT Press, vol. 73(2), pages 189-199, May.
    7. James K. Binkley, 2008. "Calorie and Gram Differences between Meals at Fast Food and Table Service Restaurants," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(4), pages 750-763.
    8. Dunn, Richard A. & Sharkey, Joseph R. & Horel, Scott, 2012. "The effect of fast-food availability on fast-food consumption and obesity among rural residents: An analysis by race/ethnicity," Economics & Human Biology, Elsevier, vol. 10(1), pages 1-13.
    9. Raquel Carrasco & José M. Labeaga & J. David López-Salido, 2005. "Consumption and Habits: Evidence from Panel Data," Economic Journal, Royal Economic Society, vol. 115(500), pages 144-165, January.
    10. Janet Currie & Stefano DellaVigna & Enrico Moretti & Vikram Pathania, 2010. "The Effect of Fast Food Restaurants on Obesity and Weight Gain," American Economic Journal: Economic Policy, American Economic Association, vol. 2(3), pages 32-63, August.
    11. Lusk, Jayson L. & Weaver, Amanda, 2017. "An experiment on cash and in-kind transfers with application to food assistance programs," Food Policy, Elsevier, vol. 68(C), pages 186-192.
    12. Charles L. Baum, 2011. "The Effects of Food Stamps on Obesity," Southern Economic Journal, John Wiley & Sons, vol. 77(3), pages 623-651, January.
    13. Boonsaeng, Tullaya & Carpio, Carlos E. & Zhen, Chen & Okrent, Abigail M., 2012. "The Effect of Supplemental Nutrition Assistance Program on Food Spending Among Low-Income Households," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124839, Agricultural and Applied Economics Association.
    14. Timothy J. Richards & Paul M. Patterson & Abebayehu Tegene, 2007. "Obesity And Nutrient Consumption: A Rational Addiction?," Contemporary Economic Policy, Western Economic Association International, vol. 25(3), pages 309-324, July.
    15. Timothy K.M. Beatty & Charlotte J. Tuttle, 2015. "Expenditure Response to Increases in In-Kind Transfers: Evidence from the Supplemental Nutrition Assistance Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(2), pages 390-404.
    16. M. Dolores Collado & Martin Browning, 2007. "Habits and heterogeneity in demands: a panel data analysis," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(3), pages 625-640.
    17. Burgstahler, Rebecca & Gundersen, Craig & Garasky, Steven B., 2012. "The Supplemental Nutrition Assistance Program, Financial Stress, and Childhood Obesity," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 41(1), pages 1-14, April.
    18. Robert Kaestner & Sanders Korenman & June O'Neill, 2003. "Has welfare reform changed teenage behaviors?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 22(2), pages 225-248.
    19. Cai, Yongxia & Alviola, Pedro A. & Nayga, Rodolfo M. & Wu, Ximing, 2008. "The Effect of Food-Away-from-Home and Food-at-Home Expenditures on Obesity Rates: A State-Level Analysis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(2), pages 507-521, August.
    20. Daron Acemoglu & David H. Autor & David Lyle, 2004. "Women, War, and Wages: The Effect of Female Labor Supply on the Wage Structure at Midcentury," Journal of Political Economy, University of Chicago Press, vol. 112(3), pages 497-551, June.
    21. Todd, Jessica E. & Mancino, Lisa & Lin, Biing-Hwan, 2010. "The Impact of Food Away from Home on Adult Diet Quality," Economic Research Report 58298, United States Department of Agriculture, Economic Research Service.
    22. Mancino, Lisa & Todd, Jessica & Lin, Biing-Hwan, 2009. "Separating what we eat from where: Measuring the effect of food away from home on diet quality," Food Policy, Elsevier, vol. 34(6), pages 557-562, December.
    23. Peter Ganong & Jeffrey B. Liebman, 2018. "The Decline, Rebound, and Further Rise in SNAP Enrollment: Disentangling Business Cycle Fluctuations and Policy Changes," American Economic Journal: Economic Policy, American Economic Association, vol. 10(4), pages 153-176, November.
    24. Naik, Narayan Y & Moore, Michael J, 1996. "Habit Formation and Intertemporal Substitution in Individual Food Consumption," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 321-328, May.
    25. David H. Autor, 2003. "Outsourcing at Will: The Contribution of Unjust Dismissal Doctrine to the Growth of Employment Outsourcing," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 1-42, January.
    26. Steven T. Yen & Margaret Andrews & Zhuo Chen & David B. Eastwood, 2008. "Food Stamp Program Participation and Food Insecurity: An Instrumental Variables Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(1), pages 117-132.
    27. Kim, Jiyoon, 2016. "Do SNAP participants expand non-food spending when they receive more SNAP Benefits?—Evidence from the 2009 SNAP benefits increase," Food Policy, Elsevier, vol. 65(C), pages 9-20.
    28. Adwait Khare & J. Jeffrey Inman, 2006. "Habitual Behavior in American Eating Patterns: The Role of Meal Occasions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 32(4), pages 567-575, March.
    29. Robinson, Christina A. & Zheng, Xiaoyong, 2011. "Household Food Stamp Program Participation and Childhood Obesity," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(1), pages 1-13, April.
    30. Todd, Jessica & Morrison, Rosanna Mentzer, 2014. "Less Eating Out, Improved Diets, and More Family Meals in the Wake of the Great Recession," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, issue 02, pages 1-1, March.
    31. James K. Binkley, 2008. "Calorie and Gram Differences between Meals at Fast Food and Table Service Restaurants," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(4), pages 750-763.
    32. Christian A. Gregory & Alisha Coleman-Jensen, 2013. "Do High Food Prices Increase Food Insecurity in the United States?," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 35(4), pages 679-707.
    33. Davis, George C. & You, Wen, 2011. "Not enough money or not enough time to satisfy the Thrifty Food Plan? A cost difference approach for estimating a money-time threshold," Food Policy, Elsevier, vol. 36(2), pages 101-107, April.
    34. Meyerhoefer, Chad D. & Pylypchuk, Vuriy, 2008. "AJAE Appendix: Does Participation in the Food Stamp Program Increase the Prevalence of Obesity and Health Care Spending?," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 90(2), pages 1-6.
    35. Liu, Miaoru & Kasteridis, Panagiotis & Yen, Steven T., 2013. "Breakfast, lunch, and dinner expenditures away from home in the United States," Food Policy, Elsevier, vol. 38(C), pages 156-164.
    36. Zhuo Chen & Steven T. Yen & David B. Eastwood, 2005. "Effects of Food Stamp Participation on Body Weight and Obesity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1167-1173.
    37. Michael L. Anderson & David A. Matsa, 2011. "Are Restaurants Really Supersizing America?," American Economic Journal: Applied Economics, American Economic Association, vol. 3(1), pages 152-188, January.
    38. Karen E. Dynan, 2000. "Habit Formation in Consumer Preferences: Evidence from Panel Data," American Economic Review, American Economic Association, vol. 90(3), pages 391-406, June.
    39. Caroline Ratcliffe & Signe-Mary McKernan & Sisi Zhang, 2011. "How Much Does the Supplemental Nutrition Assistance Program Reduce Food Insecurity?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(4), pages 1082-1098.
    40. repec:cup:jagaec:v:40:y:2008:i:1:p:21-35_21 is not listed on IDEAS
    41. Mancino, Lisa & Todd, Jessica E. & Guthrie, Joanne F. & Lin, Biing-Hwan, 2010. "How Food Away From Home Affects Children's Diet Quality," Economic Research Report 134700, United States Department of Agriculture, Economic Research Service.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    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. Wang, Julia Shu-Huah & Zhao, Xi & Nam, Jaehyun, 2021. "The effects of welfare participation on parenting stress and parental engagement using an instrumental variables approach: Evidence from the Supplemental Nutrition Assistance Program," Children and Youth Services Review, Elsevier, vol. 121(C).
    3. Arjun Gupta & Soudeh Mirghasemi & Mohammad Arshad Rahman, 2021. "Heterogeneity in food expenditure among US families: evidence from longitudinal quantile regression," Indian Economic Review, Springer, vol. 56(1), pages 25-48, June.
    4. Lee, Ji Yong & Nayga Jr, Rodolfo M. & Jo, Young & Restrepo, Brandon J., 2022. "Time use and eating patterns of SNAP participants over the benefit month," Food Policy, Elsevier, vol. 106(C).
    5. Wu, Kaidi, 2020. "The Effect of SNAP on Dietary Quality: Evidence from FoodAPS," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304462, Agricultural and Applied Economics Association.
    6. Khanal, Binod, 2020. "Cash transfers and consumption of healthy and unhealthy food: evidence from tax refunds," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304346, Agricultural and Applied Economics Association.
    7. Burney, Shaheer & Boehm, Rebecca L. & Lopez, Rigoberto A., 2018. "Impact of the 2014 Medicaid Expansion on SNAP Participation," 2018 Annual Meeting, August 5-7, Washington, D.C. 273847, Agricultural and Applied Economics Association.
    8. Katare, Bhagyashree & Binkley, James K. & Chen, Kaiyan, 2021. "Nutrition and diet quality of food at home by Supplemental Nutrition Assistance Program (SNAP) status," Food Policy, Elsevier, vol. 105(C).
    9. Gundersen, Craig, 2021. "Viewpoint: A proposal to reconstruct the Supplemental Nutrition Assistance Program (SNAP) into a universal basic income program for food," Food Policy, Elsevier, vol. 101(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lee, Ji Yong & Nayga Jr, Rodolfo M. & Jo, Young & Restrepo, Brandon J., 2022. "Time use and eating patterns of SNAP participants over the benefit month," Food Policy, Elsevier, vol. 106(C).
    2. Wang, Julia Shu-Huah & Zhao, Xi & Nam, Jaehyun, 2021. "The effects of welfare participation on parenting stress and parental engagement using an instrumental variables approach: Evidence from the Supplemental Nutrition Assistance Program," Children and Youth Services Review, Elsevier, vol. 121(C).
    3. Burney, Shaheer & Boehm, Rebecca & Lopez, Rigoberto, 2021. "The impact of the ACA Medicaid expansion on SNAP participation," Food Policy, Elsevier, vol. 101(C).
    4. Alston, Julian M. & Mullally, Conner C. & Sumner, Daniel A. & Townsend, Marilyn & Vosti, Stephen A., 2009. "Likely effects on obesity from proposed changes to the US food stamp program," Food Policy, Elsevier, vol. 34(2), pages 176-184, April.
    5. Lorenzo Almada & Ian McCarthy & Rusty Tchernis, 2016. "What Can We Learn about the Effects of Food Stamps on Obesity in the Presence of Misreporting?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(4), pages 997-1017.
    6. Leschewski, Andrea M. & Weatherspoon, Dave D., 2017. "SNAP Household Food Expenditures Using Non-SNAP Payment Methods," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259139, Agricultural and Applied Economics Association.
    7. Dragone, D. & Ziebarth, N.R., 2015. "Non-Separable Time Preferences and Novelty Consumption: Theory and Evidence from the East German Transition to Capitalism," Health, Econometrics and Data Group (HEDG) Working Papers 15/28, HEDG, c/o Department of Economics, University of York.
    8. Katare, Bhagyashree & Binkley, James K. & Chen, Kaiyan, 2021. "Nutrition and diet quality of food at home by Supplemental Nutrition Assistance Program (SNAP) status," Food Policy, Elsevier, vol. 105(C).
    9. Tiehen, Laura & Jolliffe, Dean & Gundersen, Craig, 2012. "How State Policies Influence the Efficacy of the Supplemental Nutrition Assistance Program in Reducing Poverty," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124937, Agricultural and Applied Economics Association.
    10. Dragone, Davide & Ziebarth, Nicolas R., 2017. "Non-separable time preferences, novelty consumption and body weight: Theory and evidence from the East German transition to capitalism," Journal of Health Economics, Elsevier, vol. 51(C), pages 41-65.
    11. Gregory, Christian & Deb, Partha, 2016. "Who Benefits Most from SNAP?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236648, Agricultural and Applied Economics Association.
    12. Charles J. Courtemanche & Joshua C. Pinkston & Christopher J. Ruhm & George L. Wehby, 2016. "Can Changing Economic Factors Explain the Rise in Obesity?," Southern Economic Journal, John Wiley & Sons, vol. 82(4), pages 1266-1310, April.
    13. Chad D. Meyerhoefer & Muzhe Yang, 2011. "The Relationship between Food Assistance and Health: A Review of the Literature and Empirical Strategies for Identifying Program Effects," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(3), pages 304-344.
    14. Burney, Shaheer, 2015. "Household Consumption Responses to SNAP Participation," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205326, Agricultural and Applied Economics Association.
    15. Gregory, Christian A. & Deb, Partha, 2015. "Does SNAP improve your health?," Food Policy, Elsevier, vol. 50(C), pages 11-19.
    16. Vogel, Stephen & Miller, Cristina & Ralston, Katherine, 2021. "Impact of USDA's Supplemental Nutrition Assistance Program (SNAP) on Rural and Urban Economies in the Aftermath of the Great Recession," USDA Miscellaneous 314934, United States Department of Agriculture.
    17. East, Chloe N. & Friedson, Andrew I., 2018. "An Apple a Day? Adult Food Stamp Eligibility and Health Care Utilization Among Immigrants," IZA Discussion Papers 11445, Institute of Labor Economics (IZA).
    18. Arjun Gupta & Soudeh Mirghasemi & Mohammad Arshad Rahman, 2021. "Heterogeneity in food expenditure among US families: evidence from longitudinal quantile regression," Indian Economic Review, Springer, vol. 56(1), pages 25-48, June.
    19. Manan Roy & Daniel Millimet & Rusty Tchernis, 2012. "Federal nutrition programs and childhood obesity: inside the black box," Review of Economics of the Household, Springer, vol. 10(1), pages 1-38, March.
    20. Zagorsky, Jay L. & Smith, Patricia K., 2009. "Does the U.S. Food Stamp Program contribute to adult weight gain?," Economics & Human Biology, Elsevier, vol. 7(2), pages 246-258, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jfpoli:v:75:y:2018:i:c:p:134-146. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/foodpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.