IDEAS home Printed from https://ideas.repec.org/p/ags/uersrr/262247.html
   My bibliography  Save this paper

The Food Assistance National Input-Output Multiplier (FANIOM) Model and Stimulus Effects of SNAP

Author

Listed:
  • Hanson, Kenneth

Abstract

USDA's Economic Research Service uses the Food Assistance National Input-Output Multiplier (FANIOM) model to represent and measure linkages between USDA's domestic food assistance programs, agriculture, and the U.S. economy. This report describes the data sources and the underlying assumptions and structure of the FANIOM model and illustrates its use to estimate the multiplier effects from benefits issued under the Supplemental Nutrition Assistance Program (SNAP, formerly the Food Stamp Program). During an economic downturn, an increase in SNAP benefits provides a fiscal stimulus to the economy through a multiplier process. The report also examines the different types of multipliers for different economic variables that are estimated by input-output multiplier and macroeconomic models and considers alternative estimates of the jobs impact. FANIOM's GDP multiplier of 1.79 for SNAP benefits is comparable with multipliers from some macroeconomic models.

Suggested Citation

  • Hanson, Kenneth, 2010. "The Food Assistance National Input-Output Multiplier (FANIOM) Model and Stimulus Effects of SNAP," Economic Research Report 262247, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uersrr:262247
    DOI: 10.22004/ag.econ.262247
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/262247/files/7996_err103_1_.pdf
    Download Restriction: no

    File URL: https://ageconsearch.umn.edu/record/262247/files/7996_err103_1_.pdf?subformat=pdfa
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.262247?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
    ---><---

    References listed on IDEAS

    as
    1. John B. Taylor, 2009. "The Lack Of An Empirical Rationale For A Revival Of Discretionary Fiscal Policy," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 10(02), pages 9-13, July.
    2. Chirinko, Robert S, 1993. "Business Fixed Investment Spending: Modeling Strategies, Empirical Results, and Policy Implications," Journal of Economic Literature, American Economic Association, vol. 31(4), pages 1875-1911, December.
    3. Paul A. Samuelson, 1942. "Fiscal Policy and Income Determination," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 56(4), pages 575-605.
    4. Francis X. Diebold, 1998. "The Past, Present, and Future of Macroeconomic Forecasting," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 175-192, Spring.
    5. Hanson, Kenneth & Oliveira, Victor, 2009. "Economic Linkages Between the WIC Program and the Farm Sector," Economic Brief 58992, United States Department of Agriculture, Economic Research Service.
    6. William H. Miernyk, 1965. "The Elements of Input-Output Analysis," Wholbk, Regional Research Institute, West Virginia University, number 04, Fall.
    7. Cogan, John F. & Cwik, Tobias & Taylor, John B. & Wieland, Volker, 2010. "New Keynesian versus old Keynesian government spending multipliers," Journal of Economic Dynamics and Control, Elsevier, vol. 34(3), pages 281-295, March.
    8. Robert S. Chirinko, 1992. "Business Fixed Investment Spending: A Critical survey of Modeling Strategies, Empirical Results, and Policy Implications," Working Papers 9213, Harris School of Public Policy Studies, University of Chicago.
    9. 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.
    10. Hanson, Kenneth, 2003. "Importance Of Child Nutrition Programs To Agriculture: Food Assistance Research Brief," Food Assistance and Nutrition Research Reports 262251, United States Department of Agriculture, Economic Research Service.
    11. Graham Pyatt, 2001. "Some Early Multiplier Models of the Relationship between Income Distribution and Production Structure," Economic Systems Research, Taylor & Francis Journals, vol. 13(2), pages 139-163.
    12. Martin Feldstein, 2009. "Rethinking the Role of Fiscal Policy," American Economic Review, American Economic Association, vol. 99(2), pages 556-559, May.
    13. Geoffrey J.D. Hewings, 1985. "Regional Input-Output Analysis," Wholbk, Regional Research Institute, West Virginia University, number 11 edited by Grant I. Thrall, Fall.
    14. Fritz Machlup, 1939. "Period Analysis and Multiplier Theory," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 54(1_Part_1), pages 1-27.
    15. Robert E. Hall, 2009. "By How Much Does GDP Rise If the Government Buys More Output?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 40(2 (Fall)), pages 183-249.
    16. 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.
    17. Schluter, Gerald & Edmondson, William, 1994. "USDA's Agricultural Trade Multipliers: A Primer," Agricultural Information Bulletins 309713, United States Department of Agriculture, Economic Research Service.
    18. Defourny, Jacques & Thorbecke, Erik, 1984. "Structural Path Analysis and Multiplier Decomposition within a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 94(373), pages 111-136, March.
    19. Sherman Robinson, 2006. "Macro Models and Multipliers: Leontief, Stone, Keynes, and CGE Models," Economic Studies in Inequality, Social Exclusion, and Well-Being, in: Alain Janvry & Ravi Kanbur (ed.), Poverty, Inequality and Development, chapter 0, pages 205-232, Springer.
    20. Erica L. Groshen & Simon M. Potter, 2003. "Has structural change contributed to a jobless recovery?," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 9(Aug).
    21. repec:rri:bkchap:04 is not listed on IDEAS
    22. Economic Research Service, 2003. "Food Assistance and Nutrition Research Program, Final Report: Fiscal 2002 Activities," Administrative Publications 292161, United States Department of Agriculture, Economic Research Service.
    23. Pyatt, F Graham & Round, Jeffery I, 1979. "Accounting and Fixed Price Multipliers in a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 89(356), pages 850-873, December.
    24. Vasilev, Aleksandar & Maksumov, Rashid, 2010. "Critical analysis of Chapter 23 of Keynes’s Notes on Mercantilism in The General Theory of Employment, Interest and Money (1936)," EconStor Research Reports 155318, ZBW - Leibniz Information Centre for Economics.
    25. Alain Janvry & Ravi Kanbur (ed.), 2006. "Poverty, Inequality and Development," Economic Studies in Inequality, Social Exclusion, and Well-Being, Springer, number 978-0-387-29748-4, November.
    26. Chirinko, Robert S. & Fazzari, Steven M. & Meyer, Andrew P., 1999. "How responsive is business capital formation to its user cost?: An exploration with micro data," Journal of Public Economics, Elsevier, vol. 74(1), pages 53-80, October.
    27. William G. Gale & Peter R. Orszag, 2004. "Budget Deficits, National Saving, and Interest Rates," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 35(2), pages 101-210.
    28. J. William Levedahl, 1995. "A Theoretical and Empirical Evaluation of the Functional Forms Used to Estimate the Food Expenditure Equation of Food Stamp Recipients," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 960-968.
    29. Edward S. Knotek, 2007. "How useful is Okun's law?," Economic Review, Federal Reserve Bank of Kansas City, vol. 92(Q IV), pages 73-103.
    30. Geoffrey J.D. Hewings, 1985. "Regional Input-Output Analysis," Book Chapters, in: Grant I. Thrall (ed.),Scientific Geography Series, pages 52, Regional Research Institute, West Virginia University.
    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. Pender, John & Jo, Young & Miller, Cristina, 2015. "Economic Impacts of Supplemental Nutrition Assistance Program Payments in Nonmetro vs. Metro Counties," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205626, Agricultural and Applied Economics Association.
    2. 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.
    3. Klerman, Jacob Alex & Bartlett, Susan & Wilde, Parke & Olsho, Lauren, 2013. "The Healthy Incentives Pilot and Fruit and Vegetable Intake: Interim Results," 2014 Allied Social Sciences Association (ASSA) Annual Meeting, January 3-5, 2014, Philadelphia, PA 161655, Agricultural and Applied Economics Association.
    4. Oliveira, Victor & Prell, Mark & Tiehen, Laura & Smallwood, David, 2018. "Design Issues in USDA’s Supplemental Nutrition Assistance Program: Looking Ahead by Looking Back," Economic Research Report 276253, United States Department of Agriculture, Economic Research Service.
    5. Prell, Mark A. & Finifter, David H., 2013. "Participation in the Supplemental Nutrition Assistance Program (SNAP) and Unemployment Insurance How Tight Are the Strands of the Recessionary Safety Net?," Economic Research Report 160453, United States Department of Agriculture, Economic Research Service.
    6. Finifter, David H. & Prell, Mark A., 2013. "Participation in SNAP and Unemployment Insurance: How Tight Are the Strands of the Recessionary Safety Net?," Economic Research Report 262216, United States Department of Agriculture, Economic Research Service.
    7. Pankaj C. Patel & Cornelius A. Rietveld & Jack I. Richter, 2022. "The relation between public assistance and self-employment in census tracts: a long-term perspective," Journal of Evolutionary Economics, Springer, vol. 32(3), pages 891-927, July.
    8. Todd, Jessica E. & Gregory, Christian, 2018. "Changes in Supplemental Nutrition Assistance Program real benefits and daily caloric intake among adults," Food Policy, Elsevier, vol. 79(C), pages 111-120.
    9. 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.
    10. repec:ags:afjare:225656 is not listed on IDEAS
    11. Ronette Briefel & Ann Collins & Anne Wolf, 2013. "Impact of the Summer Electronic Benefits Transfer for Children (SEBTC) Demonstration on Children's Nutritional Status," Mathematica Policy Research Reports 70b9a2885872491fbd95042a8, Mathematica Policy Research.
    12. Anne Peterson & Brittany McGill & Betsy Thorn & Brian Estes & Carole Trippe & Bryan Johnson & Ellen Thompson & Errol Baker & Jonathan Ladinsky & Gretchen Rowe, "undated". "Assessing the Feasibility of Implementing SNAP in the Commonwealth of the Northern Mariana Islands," Mathematica Policy Research Reports b383658102c7435e900af4b7f, Mathematica Policy Research.
    13. 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.
    14. repec:mpr:mprres:7963 is not listed on IDEAS
    15. West, Tyler T. & Reimer, Jeffrey J., 2013. "Household and Intersectoral Effects of Reduced SNAP Expenditures: A Computable General Equilibrium Analysis," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150410, Agricultural and Applied Economics Association.
    16. Kinsey, Jean D., 2013. "The economics of federal food programs: Weighing the costs and benefits," C-FARE Reports 156193, Council on Food, Agricultural, and Resource Economics (C-FARE).
    17. Leslie Hossfeld & Laura Jean Kerr & Judy Belue, 2019. "The Good Food Revolution: Building Community Resiliency in the Mississippi Delta," Social Sciences, MDPI, vol. 8(2), pages 1-10, February.
    18. Jacob Alex Klerman & Anne Wolf & Ann Collins & Stephen Bell & Ronette Briefel, 2017. "The Effects the Summer Electronic Benefits Transfer for Children Demonstration has on Children’s Food Security," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(3), pages 516-532.

    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. Muhammad Jami Husain & Bazlul Haque Khondker, 2016. "Tobacco-free Economy: A SAM-based Multiplier Model to Quantify the Impact of Changes in Tobacco Demand in Bangladesh," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 10(1), pages 55-85, February.
    2. Alan J. Auerbach & William G. Gale, 2009. "Activist fiscal policy to stabilize economic activity," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 327-374.
    3. Timothy Erickson & Toni M. Whited, 2000. "Measurement Error and the Relationship between Investment and q," Journal of Political Economy, University of Chicago Press, vol. 108(5), pages 1027-1057, October.
    4. Giuseppe Cinquegrana, 2014. "Effetti differenziali delle politiche monetarie sugli investimenti delle imprese industriali italiane: un?analisi con metodologia panel," RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO, FrancoAngeli Editore, vol. 2014(3), pages 40-78.
    5. Daron Acemoglu & James A. Robinson, 2015. "The Rise and Decline of General Laws of Capitalism," Journal of Economic Perspectives, American Economic Association, vol. 29(1), pages 3-28, Winter.
    6. Enrico Sergio Levrero, 2021. "Estimates of the Natural Rate of Interest and the Stance of Monetary Policies: A Critical Assessment," International Journal of Political Economy, Taylor & Francis Journals, vol. 50(1), pages 5-27, February.
    7. Jean-Bernard Chatelain, 2003. "Structural modelling of financial constraints on investment: where do we stand?," Chapters, in: Paul Butzen & Catherine Fuss (ed.), Firms’ Investment and Finance Decisions, chapter 2, pages 40-58, Edward Elgar Publishing.
    8. Walch, Florian & Dwenger, Nadja, 2011. "Tax Losses and Firm Investment: Evidence from Tax Statistics," VfS Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48699, Verein für Socialpolitik / German Economic Association.
    9. Santiago Villegas Salazar, 2009. "Evidencia del canal de la hoja de balance a través de la inversión de las empresas colombianas (1995-2007)," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República, vol. 27(60), pages 168-215, December.
    10. Eugenio Gaiotti & Andrea Generale, 2002. "Does Monetary Policy Have Asymmetric Effects? A Look at the Investment Decisions of Italian Firms," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 61(1), pages 29-59, June.
    11. Saari, M. Yusof & Dietzenbacher, Erik & Los, Bart, 2015. "Sources of Income Growth and Inequality Across Ethnic Groups in Malaysia, 1970–2000," World Development, Elsevier, vol. 76(C), pages 311-328.
    12. Simon Gilchrist & Egon Zakrajsek, 2007. "Investment and the Cost of Capital: New Evidence from the Corporate Bond Market," NBER Working Papers 13174, National Bureau of Economic Research, Inc.
    13. Robert A. Blecker, 2014. "Economic stagnation in the United States: underlying causes and global consequences," Brazilian Journal of Political Economy, Center of Political Economy, vol. 34(4), pages 689-725.
    14. Deepankar Basu & Debarshi Das, 2017. "Profitability and Investment: Evidence from India's Organized Manufacturing Sector," Metroeconomica, Wiley Blackwell, vol. 68(1), pages 47-90, February.
    15. repec:onb:oenbwp:y::i:58:b:1 is not listed on IDEAS
    16. Barnes, Sebastian & Price, Simon & Sebastia Barriel, Maria, 2008. "The elasticity of substitution: evidence from a UK firm-level data set," Bank of England working papers 348, Bank of England.
    17. Saari, M. Yusof & Dietzenbacher, Erik & Los, Bart, 2014. "Production interdependencies and poverty reduction across ethnic groups in Malaysia," Economic Modelling, Elsevier, vol. 42(C), pages 146-158.
    18. Julius Mukarati & Makombe Godswill, 2016. "Modeling The Distributive Effects Of An Agrciultural Shock On Household Income In South African: A Sam Multiplier Decomposition And Structural Path Analysis," EcoMod2016 9216, EcoMod.
    19. Jocelyn Boussard & Francisco de Castro & Matteo Salto, 2012. "Fiscal Multipliers and Public Debt Dynamics in Consolidations," European Economy - Economic Papers 2008 - 2015 460, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    20. Smith, James, 2008. "That elusive elasticity and the ubiquitous bias: Is panel data a panacea?," Journal of Macroeconomics, Elsevier, vol. 30(2), pages 760-779, June.
    21. Robert A. Blecker, 2016. "Wage-led versus profit-led demand regimes: the long and the short of it," Review of Keynesian Economics, Edward Elgar Publishing, vol. 4(4), pages 373-390, October.

    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:ags:uersrr:262247. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ersgvus.html .

    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.