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Re‐Examining the SNAP Benefit Cycle Allowing for Heterogeneity

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  • Jeffrey H Dorfman
  • Christian Gregory
  • Zhongyuan Liu
  • Ran Huo

Abstract

A well‐known feature of the Supplemental Nutrition Assistance Program (SNAP) is that some recipients spend a disproportionate amount of their monthly benefit early in the month. Using a finite mixture model that optimally separates households into two groups, coupled with the National Household Food Acquisition and Purchase Survey, we re‐examine this spending pattern. Results show that a minority of SNAP recipients cause the benefit cycle by spending, on average, two‐thirds of their monthly benefit within the first four days. A potential implication of these findings is that more frequent SNAP benefit disbursal or educational programs designed to encourage smoother spending over the month might be of benefit to some SNAP households.

Suggested Citation

  • 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.
    • Handle: RePEc:wly:apecpp:v:41:y:2019:i:3:p:404-433
    DOI: 10.1093/aepp/ppy013
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    1. 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).
    2. Benjamin Scharadin & Yang Yu & Edward C. Jaenicke, 2021. "Household time activities, food waste, and diet quality: the impact of non-marginal changes due to COVID-19," Review of Economics of the Household, Springer, vol. 19(2), pages 399-428, June.
    3. de Rezende, Rafael & Egert, Katharina & Marin, Ignacio & Thompson, Guilherme, 2022. "A white-boxed ISSM approach to estimate uncertainty distributions of Walmart sales," International Journal of Forecasting, Elsevier, vol. 38(4), pages 1460-1467.
    4. 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).
    5. Scharadin, Benjamin, 2022. "The efficacy of the dependent care deduction at maintaining diet quality," Food Policy, Elsevier, vol. 107(C).

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