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Food Price Variation over the SNAP Benefit Cycle

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  • Beatty, Timothy K.M.

Abstract

The Supplemental Nutrition Assistance Program (SNAP) is the largest nutrition assistance program in the United States and is a vital part of the social safety net. The monthly lump-sum benefit distribution schedule has led to higher food expenditures and consumption shortly after the date of benefit receipt, and a diminishing food expenditures and associated food consumption pattern towards the end of the benefit month. This has been found to have adverse effects on beneficiaries' dietary outcomes. In this paper, we investigate food purchasing patterns of SNAP households over the month using data from the National Food Acquisition and Purchase Survey (FoodAPS), a newly developed nationally representative survey, and its geographic component. We ask the research question: do SNAP recipients pay more for otherwise similar food at the beginning of the benefit cycle, and substitute less costly food as the month proceeds? We found that the unit cost of food bought declines significantly over the benefit cycle when households make purchases using SNAP benefits. Our results shed light on the optimal policy design of food assistance programs through a better understanding of program participants' food-purchasing behavior.

Suggested Citation

  • Beatty, Timothy K.M., 2016. "Food Price Variation over the SNAP Benefit Cycle," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236012, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea16:236012
    DOI: 10.22004/ag.econ.236012
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    References listed on IDEAS

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    1. Parke E. Wilde & Christine K. Ranney, 2000. "The Monthly Food Stamp Cycle: Shooping Frequency and Food Intake Decisions in an Endogenous Switching Regression Framework," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 200-213.
    2. Shapiro, Jesse M., 2005. "Is there a daily discount rate? Evidence from the food stamp nutrition cycle," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 303-325, February.
    3. Timothy K.M. Beatty, 2010. "Do the Poor Pay More for Food?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 608-621.
    4. Justine Hastings & Ebonya Washington, 2010. "The First of the Month Effect: Consumer Behavior and Store Responses," American Economic Journal: Economic Policy, American Economic Association, vol. 2(2), pages 142-162, May.
    5. David McKenzie & Ernesto Schargrodsky, 2011. "Buying Less but Shopping More: The Use of Nonmarket Labor during a Crisis," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 1-43, January.
    6. Jessica E. Todd, 2015. "Revisiting the Supplemental Nutrition Assistance Program cycle of food intake: Investigating heterogeneity, diet quality, and a large boost in benefit amounts," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(3), pages 437-458.
    7. Kaufman, Phillip R. & MacDonald, James M. & Lutz, Steve M. & Smallwood, David M., 1997. "Do the Poor Pay More for Food? Item Selection and Price Differences Affect Low-Income Household Food Costs," Agricultural Economic Reports 34065, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Tal Gross & Timothy J. Layton & Daniel Prinz, 2022. "The Liquidity Sensitivity of Healthcare Consumption: Evidence from Social Security Payments," American Economic Review: Insights, American Economic Association, vol. 4(2), pages 175-190, June.
    2. Timothy K. M. Beatty & Marianne P. Bitler & Xinzhe Huang Cheng & Cynthia van der Werf, 2019. "SNAP and Paycheck Cycles," Southern Economic Journal, John Wiley & Sons, vol. 86(1), pages 18-48, July.
    3. Pourya Valizadeh & Travis A. Smith & Michele Ver Ploeg, 2021. "Do SNAP Households Pay Different Prices throughout the Benefit Month?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(3), pages 1051-1075, September.

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    Agricultural and Food Policy; Health Economics and Policy;

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