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Rural versus Urban Areas and the Supplemental Nutrition Assistance Program

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  • Weerasooriya, Senal A.
  • Reimer, Jeffrey J.

Abstract

This study quantifies how spending changes induced by the Supplemental Nutrition Assistance Program (SNAP) affects production and employment in rural and urban areas. A general equilibrium simulation model with an estimated demand system is first used to project how SNAP affects spending on different goods and services. These impacts are then linked to the expansion and contraction of different economic sectors that differ in importance across rural and urban Oregon. In urban areas, a number of service sectors linked to higher-income households shrink slightly in response to SNAP, while food-related sectors expand; the net effect on jobs is slightly negative. Production changes in rural areas are generally smaller, while having a slightly positive net effect on jobs. Overall, SNAP makes a positive difference for low- or no-income households without strong effects elsewhere in the economy.

Suggested Citation

  • Weerasooriya, Senal A. & Reimer, Jeffrey J., 2020. "Rural versus Urban Areas and the Supplemental Nutrition Assistance Program," Agricultural and Resource Economics Review, Cambridge University Press, vol. 49(3), pages 538-557, December.
    • Handle: RePEc:cup:agrerw:v:49:y:2020:i:3:p:538-557_7
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    Cited by:

    1. 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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