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The Effect of Supplemental Nutrition Assistance Program on Food Spending Among Low-Income Households

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Author Info

  • Boonsaeng, Tullaya
  • Carpio, Carlos E.
  • Zhen, Chen
  • Okrent, Abigail M.

Abstract

The main goal of this paper is to provide current information on the impacts of Supplemental Nutrition Assistant Program (SNAP) on food spending across two food subgroups: food at home (FAH) and food away from home (FAFH). Data was obtained from the BLS‟s Consumer Expenditure Survey and Detailed Monthly Consumer Price Indices from years 1998 to 2009. Censoring of expenditures and the endogeneity of the SNAP participation variable are accounted for with the use of specialized econometric procedures. We found that SNAP participation increases FAH by $25 and decreases expenditures on food away from home by $32. Since the average SNAP benefits received by participants in the program is $80, the marginal propensity to consume of food at home out of SNAP benefits is 0.31.

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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington with number 124839.

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Date of creation: 2012
Date of revision:
Handle: RePEc:ags:aaea12:124839

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Keywords: Censored Demand; Control Function Approach for Endogeneity; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety;

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References

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  1. Carlos E. Carpio & Michael K. Wohlgenant, 2010. "A general two-constraint model of consumer demand," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 37(4), pages 433-452, December.
  2. Hoderlein, Stefan & Mihaleva, Sonya, 2008. "Increasing the price variation in a repeated cross section," Journal of Econometrics, Elsevier, vol. 147(2), pages 316-325, December.
  3. Andreas C. Drichoutis & Stathis Klonaris & Panagiotis Lazaridis & Rodolfo M. Nayga, 2008. "Household food consumption in Turkey: a comment," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 35(1), pages 93-98, March.
  4. Stewart, Hayden & Yen, Steven T., 2004. "Changing household characteristics and the away-from-home food market: a censored equation system approach," Food Policy, Elsevier, vol. 29(6), pages 643-658, December.
  5. Elton Mykerezi & Bradford Mills, 2010. "The Impact of Food Stamp Program Participation on Household Food Insecurity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(5), pages 1379-1391.
  6. Neeraj Kaushal, 2007. "Do Food Stamps Cause Obesity? Evidence from Immigrant Experience," NBER Working Papers 12849, National Bureau of Economic Research, Inc.
  7. John L. Park & Rodney B. Holcomb & Kellie Curry Raper & Oral Capps, 1996. "A Demand Systems Analysis of Food Commodities by U.S. Households Segmented by Income," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 290-300.
  8. Parke E. Wilde & Lisa M. Troy & Beatrice L. Rogers, 2007. "Food Stamps and Food Spending: An Engel Function Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(2), pages 416-430.
  9. Meyerhoefer, Chad D. & Pylypchuk, Vuriy, 2008. "AJAE Appendix: Does Participation in the Food Stamp Program Increase the Prevalence of Obesity and Health Care Spending?," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 90(2), May.
  10. Craig Gundersen & Victor Oliveira, 2001. "The Food Stamp Program and Food Insufficiency," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 875-887.
  11. Yen, Steven T. & Lin, Biing-Hwan, 2004. "A Sample Selection Approach To Censored Demand Systems," 2004 Annual meeting, August 1-4, Denver, CO 20082, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  12. Okrent, Abigail M. & Alston, Julian M., 2010. "The Demand for Food in the United States: A Review of the Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61674, Agricultural and Applied Economics Association.
  13. J. Scott Shonkwiler & Steven T. Yen, 1999. "Two-Step Estimation of a Censored System of Equations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 972-982.
  14. Arthur Lewbel & Krishna Pendakur, 2009. "Tricks with Hicks: The EASI Demand System," American Economic Review, American Economic Association, vol. 99(3), pages 827-63, June.
  15. Steven T. Yen & Margaret Andrews & Zhuo Chen & David B. Eastwood, 2008. "Food Stamp Program Participation and Food Insecurity: An Instrumental Variables Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(1), pages 117-132.
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Cited by:
  1. James Mabli & Jim Ohls & Lisa Dragoset & Laura Castner & Betsy Santos, 2013. "Measuring the Effect of Supplemental Nutrition Assistance Program (SNAP) Participation on Food Security," Mathematica Policy Research Reports 7860, Mathematica Policy Research.

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