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Local Food Prices, SNAP Purchasing Power, and Child Health

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  • Erin T. Bronchetti
  • Garret S. Christensen
  • Hilary W. Hoynes

Abstract

The Supplemental Nutrition Assistance Program (SNAP, formerly food stamps) is one of the most important elements of the social safety net. Unlike most other safety net programs, SNAP varies little across states and over time, which creates challenges for quasi-experimental evaluation. Notably, SNAP benefits are fixed across 48 states; but local food prices vary, leading to geographic variation in the real value – or purchasing power – of SNAP benefits. In this study, we provide the first estimates that leverage variation in SNAP purchasing power across markets to examine effects of SNAP on child health. We link panel data on regional food prices to National Health Interview Survey data and use a fixed effects framework to estimate the relationship between local purchasing power of SNAP and children’s health and health care utilization. We find that lower SNAP purchasing power leads to lower utilization of preventive health care and more days of school missed due to illness. We find no effect on reported health status.

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  • Erin T. Bronchetti & Garret S. Christensen & Hilary W. Hoynes, 2018. "Local Food Prices, SNAP Purchasing Power, and Child Health," NBER Working Papers 24762, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:24762
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    Cited by:

    1. Ryan, Rebecca M. & Gassman-Pines, Anna & Steimle, Samantha & Baker, Garrett & Hines, Caitlin T. & Johnson, Anna D., 2023. "The role of public and private food assistance in supporting families’ food security and meal routines," Children and Youth Services Review, Elsevier, vol. 150(C).
    2. Li, Qingxiao & Cakir, Metin, 2020. "Thrifty Food Plan Panel Price Index and the Real Value of SNAP Benefits," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304201, Agricultural and Applied Economics Association.
    3. Jacob E. Bastian, 2024. "The EITC in rural and economically distressed areas: More bang per buck?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(1), pages 136-159, February.
    4. Katherine Meckel, 2020. "Is the Cure Worse Than the Disease? Unintended Effects of Payment Reform in a Quantity-Based Transfer Program," American Economic Review, American Economic Association, vol. 110(6), pages 1821-1865, June.
    5. Lindsey Lacey, 2023. "The physical and mental health returns of Head Start 25 years after participation: Evidence from income eligibility cutoffs," Economic Inquiry, Western Economic Association International, vol. 61(4), pages 870-890, October.
    6. 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).
    7. Marcella Alsan & Crystal S. Yang, 2024. "Fear and the Safety Net: Evidence from Secure Communities," The Review of Economics and Statistics, MIT Press, vol. 106(6), pages 1427-1441, November.
    8. Ali, Amjad & Khokhar, Bilal & Sulehri, Fiaz Ahmad, 2023. "Financial Dimensions of Inflationary Pressure in Developing Countries: An In-depth Analysis of Policy Mix," MPRA Paper 119364, University Library of Munich, Germany.
    9. Justine Hastings & Ryan Kessler & Jesse M. Shapiro, 2021. "The Effect of SNAP on the Composition of Purchased Foods: Evidence and Implications," American Economic Journal: Economic Policy, American Economic Association, vol. 13(3), pages 277-315, August.
    10. Marc Audi & Amjad Ali, 2023. "The Role of Environmental Conditions and Purchasing Power Parity in Determining Quality of Life among Big Asian Cities," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 292-305, May.
    11. Tammy Leonard & David Andrews & Sandi L. Pruitt, 2022. "Impact of changes in the frequency of food pantry utilization on client food security and well‐being," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 1049-1067, June.
    12. Johannes Fleck & Chima Simpson-Bell, 2019. "Public Insurance in Heterogeneous Fiscal Federations: Evidence from American Households," 2019 Meeting Papers 296, Society for Economic Dynamics.
    13. You, Wen & Davis, George C. & Yang, Jinyang, 2022. "Viewpoint: An assessment of recent SNAP benefit increases allowing for money and time variability," Food Policy, Elsevier, vol. 106(C).
    14. Schanzenbach, Diane Whitmore, 2023. "Understanding SNAP: An overview of recent research," Food Policy, Elsevier, vol. 114(C).
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    16. Cengiz, Ezgi & Rojas, Christian, 2024. "What drives the reduction in sodium intake? Evidence from scanner data," Food Policy, Elsevier, vol. 122(C).
    17. Davis, George C. & You, Wen & Yang, Yanliang, 2020. "Are SNAP benefits adequate? A geographical and food expenditure decomposition," Food Policy, Elsevier, vol. 95(C).
    18. Christensen, Garret & Bronchetti, Erin Todd, 2020. "Local food prices and the purchasing power of SNAP benefits," Food Policy, Elsevier, vol. 95(C).

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    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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