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In-kind benefits and household behavior: The impact of SNAP on food-away-from-home consumption

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  • Burney, Shaheer

Abstract

Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, provides in-kind benefits that can generally be utilized for Food At Home (FAH) only. According to economic theory, SNAP benefits are fungible with cash for inframarginal households which may allow participants to spend benefits on non-FAH items. However, empirical evidence for this theory is mixed. This paper exploits an underutilized source of state-level variation, the early-2000 s recession, to determine the impact of SNAP participation on household Food Away From Home (FAFH) consumption. In a difference in difference framework, I compare households in high post-recession SNAP growth states to households in low post-recession SNAP growth states. The results show that SNAP participation causes a significant decrease in FAFH expenditure and FAFH’s share of total food expenditure.

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  • Burney, Shaheer, 2018. "In-kind benefits and household behavior: The impact of SNAP on food-away-from-home consumption," Food Policy, Elsevier, vol. 75(C), pages 134-146.
    • Handle: RePEc:eee:jfpoli:v:75:y:2018:i:c:p:134-146
    DOI: 10.1016/j.foodpol.2018.01.010
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    2. 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).
    3. Arjun Gupta & Soudeh Mirghasemi & Mohammad Arshad Rahman, 2021. "Heterogeneity in food expenditure among US families: evidence from longitudinal quantile regression," Indian Economic Review, Springer, vol. 56(1), pages 25-48, June.
    4. Lee, Ji Yong & Nayga Jr, Rodolfo M. & Jo, Young & Restrepo, Brandon J., 2022. "Time use and eating patterns of SNAP participants over the benefit month," Food Policy, Elsevier, vol. 106(C).
    5. Wu, Kaidi, 2020. "The Effect of SNAP on Dietary Quality: Evidence from FoodAPS," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304462, Agricultural and Applied Economics Association.
    6. Khanal, Binod, 2020. "Cash transfers and consumption of healthy and unhealthy food: evidence from tax refunds," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304346, Agricultural and Applied Economics Association.
    7. Burney, Shaheer & Boehm, Rebecca L. & Lopez, Rigoberto A., 2018. "Impact of the 2014 Medicaid Expansion on SNAP Participation," 2018 Annual Meeting, August 5-7, Washington, D.C. 273847, Agricultural and Applied Economics Association.
    8. Katare, Bhagyashree & Binkley, James K. & Chen, Kaiyan, 2021. "Nutrition and diet quality of food at home by Supplemental Nutrition Assistance Program (SNAP) status," Food Policy, Elsevier, vol. 105(C).
    9. Gundersen, Craig, 2021. "Viewpoint: A proposal to reconstruct the Supplemental Nutrition Assistance Program (SNAP) into a universal basic income program for food," Food Policy, Elsevier, vol. 101(C).

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