IDEAS home Printed from https://ideas.repec.org/p/ags/aaea14/170650.html
   My bibliography  Save this paper

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

Author

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

Abstract

The main goal of this was to examine the impact of the SNAP program on the allocation of food and nonfood spending expenditures across six subgroups: food, utilities, apparel, transportation, medical care, and other nonfood spending. The empirical analysis is conducted using a consumer demand approach instead of the traditional Engel curve approach used to evaluate the effect of SNAP participation on household spending. Endogeneity and measurement error of the SNAP participation variable and endogeneity of total expenditures are accounted for with the use of specialized econometric procedures.

Suggested Citation

  • Carpio, Carlos E. & Boonsaeng, Tullaya & Chen, Zhen & Okrent, Abigail, 2014. "The Effect of Supplemental Nutrition Assistance Program on Food and Nonfood Spending Among Low-Income Households," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170650, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea14:170650
    DOI: 10.22004/ag.econ.170650
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/170650/files/AAEApaper_SNAP_Bounds.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.170650?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Helen H. Jensen & Steven T. Yen, 1996. "Food Expenditures Away From Home by Type of Meal," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 44(1), pages 67-80, March.
    2. Steven T. Yen & Biing-Hwan Lin, 2006. "A Sample Selection Approach to Censored Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(3), pages 742-749.
    3. Hilary W. Hoynes & Diane Whitmore Schanzenbach, 2009. "Consumption Responses to In-Kind Transfers: Evidence from the Introduction of the Food Stamp Program," American Economic Journal: Applied Economics, American Economic Association, vol. 1(4), pages 109-139, October.
    4. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 151-184, February.
    5. Thomas M. Fraker & Alberto P. Martini & James C. Ohls & Michael Ponza & Elizabeth A. Quinn, 1992. "The Evaluation of the Alabama Food Stamp Cash-Out Demonstration Vol. 1: Recipient Impacts," Mathematica Policy Research Reports bc4fe28e4d704a8a84e7adf0b, Mathematica Policy Research.
    6. Kaushal, N., 2007. "Do food stamps cause obesity?: Evidence from immigrant experience," Journal of Health Economics, Elsevier, vol. 26(5), pages 968-991, September.
    7. 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.
    8. Chavas, Jean-Paul & Yeung, M. L., 1982. "Effects of the Food Stamp Program on Food Consumption in the Southern United States," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 14(1), pages 131-139, July.
    9. Wilde, Parke E. & Troy, Lisa M. & Rogers, Beatrice L., 2008. "AJAE Appendix for “Food Stamps and Food Spending: an Engel Function Approach”," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 91(2), pages 1-9, June.
    10. Unknown, 2004. "Effects Of Food Assistance And Nutrition Programs On Nutrition And Health: Volume 3, Literature Review," Food Assistance and Nutrition Research Reports 33863, United States Department of Agriculture, Economic Research Service.
    11. Andreas C. Drichoutis & Stathis Klonaris & Panagiotis Lazaridis & Rodolfo M. Nayga, 2008. "Household food consumption in Turkey: a comment," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 35(1), pages 93-98, March.
    12. Okrent, Abigail M. & Alston, Julian M., 2011. "Demand for Food in the United States: A Review of Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," Monographs, University of California, Davis, Giannini Foundation, number 251908, December.
    13. 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.
    14. Angrist, Joshua D, 2001. "Estimations of Limited Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(1), pages 2-16, January.
    15. 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), pages 1-6.
    16. Kellie Curry Raper & Maria Namakhoye Wanzala & Rodolfo Nayga, 2002. "Food expenditures and household demographic composition in the US: a demand systems approach," Applied Economics, Taylor & Francis Journals, vol. 34(8), pages 981-992.
    17. 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.
    18. Richard Blundell & Jean-Marc Robin, 2000. "Latent Separability: Grouping Goods without Weak Separability," Econometrica, Econometric Society, vol. 68(1), pages 53-84, January.
    19. Slesnick, Daniel T., 2005. "Prices and demand: New evidence from micro data," Economics Letters, Elsevier, vol. 89(3), pages 269-274, December.
    20. Arthur Lewbel & Krishna Pendakur, 2009. "Tricks with Hicks: The EASI Demand System," American Economic Review, American Economic Association, vol. 99(3), pages 827-863, June.
    21. repec:hal:spmain:info:hdl:2441/f0uohitsgqh8dhk9820172631 is not listed on IDEAS
    22. 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.
    23. Ben Senauer & Nathan Young, 1986. "The Impact of Food Stamps on Food Expenditures: Rejection of the Traditional Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 37-43.
    24. repec:mpr:mprres:1253 is not listed on IDEAS
    25. Rodolfo M. Nayga & Oral Capps, 1992. "Determinants of food away from home consumption: An update," Agribusiness, John Wiley & Sons, Ltd., vol. 8(6), pages 549-559.
    26. 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.
    27. Thomas M. Fraker & Alberto P. Martini & James C. Ohls, 1995. "The Effect of Food Stamp Cashout on Food Expenditures: An Assessment of the Findings from Four Demonstrations," Journal of Human Resources, University of Wisconsin Press, vol. 30(4), pages 633-649.
    28. Angrist, Joshua D, 2001. "Estimations of Limited Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice: Reply," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(1), pages 27-28, January.
    29. 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.
    30. Polinsky, A Mitchell, 1977. "The Demand for Housing: A Study in Specification and Grouping," Econometrica, Econometric Society, vol. 45(2), pages 447-461, March.
    31. Steven Yen & Kamhon Kan & Shew-Jiuan Su, 2002. "Household demand for fats and oils: two-step estimation of a censored demand system," Applied Economics, Taylor & Francis Journals, vol. 34(14), pages 1799-1806.
    32. 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.
    33. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hoang, Hoa K. & Westhoff, Patrick & Thompson, Wyatt & Madison, Daniel & Whistance, Jarrett, 2022. "Determinants and trajectories of federal expenditures on SNAP: The role of food prices," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322084, Agricultural and Applied Economics Association.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boonsaeng, Tullaya & Carpio, Carlos E. & Zhen, Chen & Okrent, Abigail M., 2012. "The Effect of Supplemental Nutrition Assistance Program on Food Spending Among Low-Income Households," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124839, Agricultural and Applied Economics Association.
    2. Leffler, Kristyn K. & Carpio, Carlos E. & Boonsaeng, Tullaya, 2012. "Temporal Aggregation and Treatment of Zero Dependent Variables in the Estimation of Food Demand using Cross-Sectional Data," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124913, Agricultural and Applied Economics Association.
    3. C鳡r E. Castell & Tullaya Boonsaeng & Carlos E. Carpio, 2015. "Demand system estimation in the absence of price data: an application of Stone-Lewbel price indices," Applied Economics, Taylor & Francis Journals, vol. 47(6), pages 553-568, February.
    4. Boonsaeng, Tullaya & Carpio, Carlos E., 2019. "A Comparison of Food Demand Estimation from Homescan and Consumer Expenditure Survey Data," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 44(1), January.
    5. 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).
    6. Lorenzo Almada & Ian McCarthy & Rusty Tchernis, 2016. "What Can We Learn about the Effects of Food Stamps on Obesity in the Presence of Misreporting?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(4), pages 997-1017.
    7. Zhuo Chen & Steven Yen, 2005. "On bias correction in the multivariate sample-selection model," Applied Economics, Taylor & Francis Journals, vol. 37(21), pages 2459-2468.
    8. Boonsaeng, Tullaya & Carpio, Carlos E., 2017. "Budget Allocation Patterns of American Household across Income Level in the 21 Century," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258245, Agricultural and Applied Economics Association.
    9. Maximilian D. Schmeiser, 2012. "The impact of long‐term participation in the supplemental nutrition assistance program on child obesity," Health Economics, John Wiley & Sons, Ltd., vol. 21(4), pages 386-404, April.
    10. Salois, Matthew & Balcombe, Kelvin, 2011. "Do Food Stamps Cause Obesity? A Generalised Bayesian Instrumental Variable Approach in the Presence of Heteroscedasticity," MPRA Paper 28745, University Library of Munich, Germany.
    11. Chad D. Meyerhoefer & Muzhe Yang, 2011. "The Relationship between Food Assistance and Health: A Review of the Literature and Empirical Strategies for Identifying Program Effects," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(3), pages 304-344.
    12. Boonsaeng, Tullaya & Carpio, Carlos E., 2015. "Data Collection Period and Food Demand System Estimation using Cross Sectional Data," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205576, Agricultural and Applied Economics Association.
    13. Neeraj Kaushal & Qin Gao, 2011. "Food Stamp Program and Consumption Choices," NBER Chapters, in: Economic Aspects of Obesity, pages 223-247, National Bureau of Economic Research, Inc.
    14. Almada, Lorenzo N. & Tchernis, Rusty, 2018. "Measuring effects of SNAP on obesity at the intensive margin," Economics & Human Biology, Elsevier, vol. 31(C), pages 150-163.
    15. Gregory, Christian & Deb, Partha, 2016. "Who Benefits Most from SNAP?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236648, Agricultural and Applied Economics Association.
    16. Tiehen, Laura & Jolliffe, Dean & Gundersen, Craig, 2012. "Alleviating Poverty in the United States: The Critical Role of SNAP Benefits," Economic Research Report 262233, United States Department of Agriculture, Economic Research Service.
    17. Swann, Christopher A., 2017. "Household history, SNAP participation, and food insecurity," Food Policy, Elsevier, vol. 73(C), pages 1-9.
    18. Luigi Cembalo & Francesco Caracciolo & Eugenio Pomarici, 2014. "Drinking cheaply: the demand for basic wine in Italy," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(3), pages 374-391, July.
    19. Pan, Suwen & Jensen, Helen H., 2008. "Does the Food Stamp Program Affect Food Security Status and the Composition of Food Expenditures?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 21-35, April.
    20. Alston, Julian M. & Mullally, Conner C. & Sumner, Daniel A. & Townsend, Marilyn & Vosti, Stephen A., 2009. "Likely effects on obesity from proposed changes to the US food stamp program," Food Policy, Elsevier, vol. 34(2), pages 176-184, April.

    More about this item

    Keywords

    Agricultural and Food Policy;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea14:170650. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.