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Does distributing SNAP benefits later in the month smooth expenditures?

Author

Listed:
  • Cotti, Chad D.
  • Gordanier, John M.
  • Ozturk, Orgul D.

Abstract

In this paper, we explore whether the alignment of the date a household receives Supplemental Nutrition Assistance Program (SNAP) benefits with the start of the calendar month affects the smoothness of household monthly expenditures. Across states, what day in the calendar month households receive SNAP benefits varies substantially. Further, other income sources (including transfer payments) and many regular household expenditures (e.g., rent) tend to arrive near the beginning of the calendar month. If alignment of SNAP benefit receipt with the start of the calendar month reduces expenditure smoothing, there may be important health and behavioral impacts for the SNAP population. Our main result is that increasing the median SNAP distribution date in a state by 10 days reduces the standard deviation of weekly spending by 0.23 dollars or approximately 6.5% for SNAP-eligible households. Results are robust to alternative measures of SNAP date distribution and expenditure smoothing.

Suggested Citation

  • Cotti, Chad D. & Gordanier, John M. & Ozturk, Orgul D., 2021. "Does distributing SNAP benefits later in the month smooth expenditures?," Food Policy, Elsevier, vol. 104(C).
    • Handle: RePEc:eee:jfpoli:v:104:y:2021:i:c:s0306919221001020
    DOI: 10.1016/j.foodpol.2021.102123
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    References listed on IDEAS

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    1. Jeffrey H Dorfman & Christian Gregory & Zhongyuan Liu & Ran Huo, 2019. "Re‐Examining the SNAP Benefit Cycle Allowing for Heterogeneity," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(3), pages 404-433, September.
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    Cited by:

    1. Schanzenbach, Diane Whitmore, 2023. "Understanding SNAP: An overview of recent research," Food Policy, Elsevier, vol. 114(C).

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    More about this item

    Keywords

    SNAP; Expenditure smoothing;

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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