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The Effects of Benefit Timing and Income Fungibility on Food Purchasing Decisions among Supplemental Nutrition Assistance Program Households

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  • Travis A. Smith
  • Joshua P. Berning
  • Xiaosi Yang
  • Gregory Colson
  • Jeffrey H. Dorfman

Abstract

The Supplemental Nutrition Assistance Program (SNAP) is the largest nutritional safety net in the United States. Prior research has found that participants have higher consumption shortly after receiving their benefits, followed by lower consumption towards the end of the benefit month. Known as the "SNAP benefit cycle," this consumption pattern has been found to have negative effects on beneficiaries. We hypothesize two behavioral responses of SNAP participants may work in tandem to drive much of the cycle: (1) short-run impatience—a higher preference to consume today, and (2) fungibility of income—the degree of substitutability between a SNAP dollar and a cash dollar. Using data from the National Food Acquisition and Purchase Survey (FoodAPS), a newly developed nationally representative survey of daily food acquisitions by SNAP households, we find evidence of both behavioral responses. However, the degree of short-run impatience and fungibility of income is found to differ significantly across poverty levels and use of grocery lists to plan food purchases. SNAP households could gain from food purchase planning education.

Suggested Citation

  • Travis A. Smith & Joshua P. Berning & Xiaosi Yang & Gregory Colson & Jeffrey H. Dorfman, 2016. "The Effects of Benefit Timing and Income Fungibility on Food Purchasing Decisions among Supplemental Nutrition Assistance Program Households," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(2), pages 564-580.
    • Handle: RePEc:oup:ajagec:v:98:y:2016:i:2:p:564-580.
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    Cited by:

    1. Benjamin Scharadin & Edward C. Jaenicke, 2020. "Time spent on childcare and the household Healthy Eating Index," Review of Economics of the Household, Springer, vol. 18(2), pages 357-386, June.
    2. Kuhn, Michael A., 2018. "Who feels the calorie crunch and when? The impact of school meals on cyclical food insecurity," Journal of Public Economics, Elsevier, vol. 166(C), pages 27-38.
    3. Jeffrey H Dorfman & Christian Gregory & Zhongyuan Liu & Ran Huo, 2019. "Re-Examining the SNAP Benefit Cycle Allowing for Heterogeneity," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 41(3), pages 404-433.
    4. Mary Zaki & Jessica E. Todd, 2023. "Price Consciousness at the Peak of “Impatience”," Journal of Human Resources, University of Wisconsin Press, vol. 58(3), pages 1003-1027.
    5. Fayaz Farkhad, Bita & Meyerhoefer, Chad D. & Dearden, James A., 2017. "The within-month pattern of medical utilization among SNAP participants," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258361, Agricultural and Applied Economics Association.
    6. 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.
    7. Pourya Valizadeh & Travis A. Smith & Michele Ver Ploeg, 2021. "Do SNAP Households Pay Different Prices throughout the Benefit Month?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(3), pages 1051-1075, September.
    8. 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).
    9. Leschewski, Andrea M. & Weatherspoon, Dave D., 2017. "SNAP Household Food Expenditures Using Non-SNAP Payment Methods," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259139, Agricultural and Applied Economics Association.
    10. Tuttle, Charlotte, 2016. "The Stimulus Act of 2009 and Its Effect on Food-At-Home Spending by SNAP Participants," Economic Research Report 262193, United States Department of Agriculture, Economic Research Service.
    11. Anne T. Byrne & David R. Just, 2021. "The Other Half: An Examination of Monthly Food Pantry Cycles in the Context of SNAP Benefits," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 716-731, June.
    12. Ismail, Mehreen & Wilde, Parke E. & Ver Ploeg, Michele L., 2018. "Household Structure and SNAP's Effect on Food Spending," 2018 Annual Meeting, August 5-7, Washington, D.C. 273902, Agricultural and Applied Economics Association.
    13. 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.
    14. Grogan, Louise, 2018. "The Labeling Effect of a Child Benefits System: Evidence from Russia 1994-2015," IZA Discussion Papers 11962, Institute of Labor Economics (IZA).
    15. Dahan, Momi & Sayag, Doron, 2024. "Scarcity and consumption priorities," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 108(C).
    16. Vogel, Stephen & Miller, Cristina & Ralston, Katherine, 2021. "Impact of USDA's Supplemental Nutrition Assistance Program (SNAP) on Rural and Urban Economies in the Aftermath of the Great Recession," Economic Research Report 327185, United States Department of Agriculture, Economic Research Service.
    17. Elina T Page & Elizabeth Larimore & John A Kirlin & Mark Denbaly, 2019. "The National Household Food Acquisition and Purchase Survey: Innovations and Research Insights," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(2), pages 215-234, June.
    18. Pourya Valizadeh & Travis A Smith, 2020. "How Did The American Recovery and Reinvestment Act Affect the Material Well‐Being of SNAP Participants? A Distributional Approach," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(3), pages 455-476, September.
    19. Gassman-Pines, Anna & Bellows, Laura & Copeland, William E. & Hoyle, Rick H. & Odgers, Candice L., 2023. "Day-to-day variation in adolescent food insecurity," Children and Youth Services Review, Elsevier, vol. 149(C).
    20. Yu, Yang & Fan, Linlin, 2021. "How Does Supplemental Nutrition Assistance Program Affect Household Food Waste?," 2021 Annual Meeting, August 1-3, Austin, Texas 313984, Agricultural and Applied Economics Association.
    21. Tiehen, Laura & Newman, Constance & Kirlin, John A., 2017. "The Food-Spending Patterns of Households Participating in the Supplemental Nutrition Assistance Program: Findings From USDA's FoodAPS," Economic Information Bulletin 262461, United States Department of Agriculture, Economic Research Service.
    22. 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).
    23. Todd, Jessica E. & Gregory, Christian, 2018. "Changes in Supplemental Nutrition Assistance Program real benefits and daily caloric intake among adults," Food Policy, Elsevier, vol. 79(C), pages 111-120.
    24. Travis A. Smith & Craig E. Landry, 2021. "Household Food Waste and Inefficiencies in Food Production," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 4-21, January.

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