IDEAS home Printed from https://ideas.repec.org/a/eee/jeborg/v143y2017icp45-57.html
   My bibliography  Save this article

It's a cruel summer: Household responses to reductions in government nutrition assistance

Author

Listed:
  • Almada, Lorenzo
  • McCarthy, Ian M.

Abstract

The appropriate size and scope of government nutrition assistance programs is a regular source of debate among policy-makers, and with calls to reduce government benefits, a clear understanding of household responses to any proposed benefit reduction is critical. Exploiting the design of U.S. nutrition assistance programs, we examine how low-income households reallocate their budgets following an exogenous reduction in nutrition assistance benefits. The magnitude of our results suggests that the budget for an average low-income household with children is severely inflexible and likely unable to absorb more than a $2 to $3 reduction in nutrition benefits per child per week.

Suggested Citation

  • Almada, Lorenzo & McCarthy, Ian M., 2017. "It's a cruel summer: Household responses to reductions in government nutrition assistance," Journal of Economic Behavior & Organization, Elsevier, vol. 143(C), pages 45-57.
    • Handle: RePEc:eee:jeborg:v:143:y:2017:i:c:p:45-57
    DOI: 10.1016/j.jebo.2017.08.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167268117302330
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jebo.2017.08.009?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
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lorenzo Almada & Ian McCarthy & Rusty Tchernis, 2016. "What Can We Learn about the Effects of Food Stamps on Obesity in the Presence of Misreporting?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(4), pages 997-1017.
    2. 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.
    3. Almada, Lorenzo N. & Tchernis, Rusty, 2018. "Measuring effects of SNAP on obesity at the intensive margin," Economics & Human Biology, Elsevier, vol. 31(C), pages 150-163.
    4. Moffitt, Robert A. & Ribar, David C., 2018. "Child age and gender differences in food security in a low-income U.S. inner-city population," European Economic Review, Elsevier, vol. 109(C), pages 23-41.
    5. Daniel L. Millimet & Rusty Tchernis & Muna Husain, 2010. "School Nutrition Programs and the Incidence of Childhood Obesity," Journal of Human Resources, University of Wisconsin Press, vol. 45(3).
    6. Timothy K.M. Beatty & Charlotte J. Tuttle, 2015. "Expenditure Response to Increases in In-Kind Transfers: Evidence from the Supplemental Nutrition Assistance Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(2), pages 390-404.
    7. Mullahy, John, 2011. "Marginal Effects in Multivariate Probit and Kindred Discrete and Count Outcome Models," Working Papers 201135, Geary Institute, University College Dublin.
    8. Nord, Mark & Prell, Mark A., 2011. "Food Security of SNAP Recipients Improved Following the 2009 Stimulus Package," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-8.
    9. Nord, Mark & Prell, Mark, 2011. "Food Security Improved Following the 2009 ARRA Increase in SNAP Benefits," Economic Research Report 262242, United States Department of Agriculture, Economic Research Service.
    10. Martin Browning & Thomas F. Crossley & Joachim Winter, 2014. "The Measurement of Household Consumption Expenditures," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 475-501, August.
    11. Barrow, Lisa & McGranahan, Leslie, 2000. "The Effects of the Earned Income Credit on the Seasonality of Household Expenditures," National Tax Journal, National Tax Association, vol. 53(n. 4), pages 1211-44, December.
    12. Gundersen, Craig & Kreider, Brent & Pepper, John, 2012. "The impact of the National School Lunch Program on child health: A nonparametric bounds analysis," Journal of Econometrics, Elsevier, vol. 166(1), pages 79-91.
    13. Hilary Hoynes & Diane Whitmore Schanzenbach, 2015. "US Food and Nutrition Programs," NBER Chapters, in: Economics of Means-Tested Transfer Programs in the United States, Volume 1, pages 219-301, National Bureau of Economic Research, Inc.
    14. Barrow, Lisa & McGranahan, Leslie, 2000. "The Effects of the Earned Income Credit on the Seasonality of Household Expenditures," National Tax Journal, National Tax Association;National Tax Journal, vol. 53(4), pages 1211-1244, December.
    15. Vassilopoulos, Achilleas & Drichoutis, Andreas & Nayga, Rodolfo & Lazaridis, Panagiotis, 2011. "Does the Food Stamp Program Really Increase Obesity? The Importance of Accounting for Misclassification Errors," MPRA Paper 28768, University Library of Munich, Germany.
    16. Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-632, Nov.-Dec..
    17. John Mullahy, 2011. "Marginal Effects in Multivariate Probit and Kindred Discrete and Count Outcome Models, with Applications in Health Economics," NBER Working Papers 17588, National Bureau of Economic Research, Inc.
    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. Craig Gundersen, 2019. "The Right to Food in the United States: The Role of the Supplemental Nutrition Assistance Program (SNAP)," American Journal of Agricultural Economics, John Wiley & Sons, vol. 101(5), pages 1328-1336, October.

    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. Lorenzo Almada & Ian McCarthy & Rusty Tchernis, 2016. "What Can We Learn about the Effects of Food Stamps on Obesity in the Presence of Misreporting?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(4), pages 997-1017.
    2. Justine Hastings & Jesse M. Shapiro, 2018. "How Are SNAP Benefits Spent? Evidence from a Retail Panel," American Economic Review, American Economic Association, vol. 108(12), pages 3493-3540, December.
    3. Almada, Lorenzo N. & Tchernis, Rusty, 2018. "Measuring effects of SNAP on obesity at the intensive margin," Economics & Human Biology, Elsevier, vol. 31(C), pages 150-163.
    4. 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.
    5. Agustina Laurito & Amy Ellen Schwartz, 2019. "Does School Lunch Fill the “SNAP Gap” at the End of the Month?," Southern Economic Journal, John Wiley & Sons, vol. 86(1), pages 49-82, July.
    6. Fayaz Farkhad, Bita & Meyerhoefer, Chad D., 2018. "The Impact of Participation in SNAP on Labor Force Decisions," 2018 Annual Meeting, August 5-7, Washington, D.C. 274180, Agricultural and Applied Economics Association.
    7. Charles Courtemanche & Augustine Denteh & Rusty Tchernis, 2019. "Estimating the Associations between SNAP and Food Insecurity, Obesity, and Food Purchases with Imperfect Administrative Measures of Participation," Southern Economic Journal, John Wiley & Sons, vol. 86(1), pages 202-228, July.
    8. Geetha M. Waehrer, 2023. "Age differences in expenditure responses to Supplemental Nutrition Assistance Program benefits," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(1), pages 372-391, March.
    9. 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).
    10. Bütikofer, Aline & Mølland, Eirin & Salvanes, Kjell G., 2018. "Childhood nutrition and labor market outcomes: Evidence from a school breakfast program," Journal of Public Economics, Elsevier, vol. 168(C), pages 62-80.
    11. Nathalie Mathieu‐Bolh, 2022. "The elusive link between income and obesity," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 935-968, September.
    12. Valizadeh, Pourya & Smith, Travis A., 2017. "How Did the American Recovery and Reinvestment Act (ARRA) Impact the Material Well-being of SNAP Participants? A Distributional Approach," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258496, Agricultural and Applied Economics Association.
    13. Helen H. Jensen & Brent Kreider & Oleksandr Zhylyevskyy, 2019. "Investigating Treatment Effects of Participating Jointly in SNAP and WIC when the Treatment Is Validated Only for SNAP," Southern Economic Journal, John Wiley & Sons, vol. 86(1), pages 124-155, July.
    14. Jiyoon (June) Kim & Matthew P Rabbitt & Charlotte Tuttle, 2020. "Changes in Low‐Income Households’ Spending and Time Use Patterns in Response to the 2013 Sunset of the ARRA‐SNAP Benefit," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 777-795, December.
    15. Lucie Schmidt & Lara Shore-Sheppard & Tara Watson, 2016. "The Effect of Safety-Net Programs on Food Insecurity," Journal of Human Resources, University of Wisconsin Press, vol. 51(3), pages 589-614.
    16. Johanna K. Loy & Nicki-Nils Seitz & Elin K. Bye & Paul Dietze & Carolin Kilian & Jakob Manthey & Kirsimarja Raitasalo & Renate Soellner & Björn Trolldal & Jukka Törrönen & Ludwig Kraus, 2021. "Changes in Alcoholic Beverage Choice and Risky Drinking among Adolescents in Europe 1999–2019," IJERPH, MDPI, vol. 18(20), pages 1-25, October.
    17. Jordan W. Jones & Charles Courtemanche & Augustine Denteh & James Marton & Rusty Tchernis, 2022. "Do state Supplemental Nutrition Assistance Program policies influence program participation among seniors?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 591-608, June.
    18. Mehreen S. Ismail & Michele Ver Ploeg & Virginia Chomitz & Parke Wilde, 2024. "Examining the role of the excess shelter deduction in the Supplemental Nutrition Assistance Program benefit formula," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(1), pages 300-317, March.
    19. Ishdorj, Ariun & Crepinsek, Mary Kay & Jensen, Helen H., 2012. "Children’s Consumption of Fruits and Vegetables: Do School Environment and Policies Affect Choice in School Meals?," 2012 AAEA/EAAE Food Environment Symposium 123534, Agricultural and Applied Economics Association.
    20. Ariun Ishdorj & Mary Kay Crepinsek & Helen H. Jensen, 2013. "Children's Consumption of Fruits and Vegetables: Do School Environment and Policies Affect Choices at School and Away from School?," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 35(2), pages 341-359.

    More about this item

    Keywords

    Food expenditures; Supplemental Nutrition Assistance Program; Food stamps; National School Lunch Program; School Breakfast Program;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D1 - Microeconomics - - Household Behavior
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

    Statistics

    Access and download statistics

    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:eee:jeborg:v:143:y:2017:i:c:p:45-57. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jebo .

    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.