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The Impact of Supplemental Nutrition Assistance Program Policies on Asset Holdings

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  • Jessica E Todd
  • Young Jo
  • James Richard Boohaker

Abstract

Many states have increased the asset limits used to determine eligibility in the Supplemental Nutrition Assistance Program (SNAP) in recent years. Using three panels of the Survey of Income and Program Participation, we estimate the effect of increases in the SNAP vehicle and total asset limits on vehicle and financial assets among low‐education families. We find that higher vehicle limits, together with the elimination of the total asset limit, increase the probability that a family owns a vehicle. Moreover, eliminating the total asset limit increases the value held in liquid accounts. The effect on liquid assets is greater among families in metro areas and for those at the lower end of the asset distribution. The effects on vehicle assets occur mainly among those in non‐metro areas and at the higher end of the asset distribution. Our findings imply that removing asset limits of assistance programs can lead to an increase in assets among the low‐income population.

Suggested Citation

  • Jessica E Todd & Young Jo & James Richard Boohaker, 2019. "The Impact of Supplemental Nutrition Assistance Program Policies on Asset Holdings," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(2), pages 305-328, June.
    • Handle: RePEc:wly:apecpp:v:41:y:2019:i:2:p:305-328
    DOI: 10.1093/aepp/ppy014
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    Cited by:

    1. Suttles, Shellye & Babb, Angela & Knudsen, Daniel C., 2024. "Submitted and Denied: Understanding variation in case status across Supplemental Nutrition assistance program (SNAP) applications," Food Policy, Elsevier, vol. 123(C).
    2. Fitzpatrick, Katie, 2024. "Non-bank credit and food hardship: The association between payday loans, pawn loans, rent-to-own contracts and food hardship in households with children," Children and Youth Services Review, Elsevier, vol. 157(C).
    3. Stacy Dickert‐Conlin & Katie Fitzpatrick & Brian Stacy & Laura Tiehen, 2021. "The Downs and Ups of the SNAP Caseload: What Matters?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(3), pages 1026-1050, September.
    4. Suttles, Shellye A. & Babb, Angela & Knudsen, Daniel, 2022. "Submitted and Denied: Understanding Variation in Case Status Across Supplemental Nutrition Assistance Program (SNAP) Applications," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322195, Agricultural and Applied Economics Association.

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