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Government shutdown and SNAP disbursements: effects on household expenditures

Author

Listed:
  • Mindy Marks

    (Northeastern University)

  • Silvia Prina

    (Northeastern University
    IZA
    J-PAL)

  • Roy Gernhardt

    (Northeastern University)

Abstract

We test the ability of SNAP eligible households to respond to a temporary change in benefit timing. We exploit the 2018–2019 US government shutdown in which all states were federally mandated to pay February SNAP benefits in January. This created a short-term windfall (two payments very close to each other) followed by a longer than normal gap during which no SNAP disbursements were received. Using a triple differences approach, we show that expenditures are lower in February (relative to other months) 2019 (relative to 2018) for SNAP recipients (relative to near-eligible households). We complement this finding by exploiting preexisting state-level differences in disbursement schedules that drove some states to temporarily alter the timing of the 2019 March and April SNAP disbursements. Diff-in-diff estimates show that SNAP eligible households in those states reduced spending. Our findings are inconsistent with the permanent income hypothesis and suggest that the timing of benefits matters for household consumption.

Suggested Citation

  • Mindy Marks & Silvia Prina & Roy Gernhardt, 2025. "Government shutdown and SNAP disbursements: effects on household expenditures," Review of Economics of the Household, Springer, vol. 23(1), pages 295-326, March.
    • Handle: RePEc:kap:reveho:v:23:y:2025:i:1:d:10.1007_s11150-024-09719-4
    DOI: 10.1007/s11150-024-09719-4
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    More about this item

    Keywords

    consumption smoothing; benefit timing; permanent income hypothesis; SNAP; government shutdown;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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