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Did the American Recovery and Reinvestment Act Increase in SNAP Benefits Reduce the Impact of Food Deserts?

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Author Info

  • Andrews, Margaret S.
  • Bhatta, Rhea
  • Ver Ploeg, Michele

Abstract

Public policy discussion of the problem of food deserts has concentrated on proximity to retail food stores providing nutritious, affordable foods. Because they offer a wide array of healthful products at lower prices, physical access to a supermarket or supercenter has come to be the standard of adequacy. Less attention has been given to how economic incentives influence access to retail food stores in the wider food environment. The American Recovery and Reinvestment Act (ARRA) enacted a sizable increase in SNAP benefits effective April 2009. Though the primary purpose of the increase was to stimulate the economy, we argue that it had a secondary effect of encouraging SNAP participants to redeem more of their benefits at larger, lower-priced retailers. To investigate the effect of this policy change, we use county-level, administrative data on SNAP redemptions at different types of authorized food stores from May 2007 to May 2010. Data from the Economic Research Service’s Food Desert Locator are used to classify counties according to the percent of their population residing in food deserts. Results show that the SNAP benefit increase is associated with a greater percentage of redemptions at superstores. Estimates are stable across a number of specifications that also control for gas prices and store-type density. Within our sample of counties, we show that an $80 maximum SNAP benefit increased the percentage of benefits redeemed at supermarkets by 1.4 percentage points. In order to achieve a similar increase in redemptions at superstores, store density would have to increase from one superstore every 24 square miles to 1 superstore every 15 square miles. Impacts of the benefit increase were positive, but somewhat smaller in areas with more of their population residing in food deserts.

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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2012 AAEA/EAAE Food Environment Symposium, May 30-31, Boston, MA with number 123520.

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Date of creation: 2012
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Handle: RePEc:ags:aaeafe:123520

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Keywords: Food Consumption/Nutrition/Food Safety;

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  1. Jerry Hausman & Ephraim Leibtag, 2005. "Consumer Benefits from Increased Competition in Shopping Outlets: Measuring the Effect of Wal-Mart," NBER Working Papers 11809, National Bureau of Economic Research, Inc.
  2. James X. Sullivan, 2006. "Welfare Reform, Saving, and Vehicle Ownership: Do Asset Limits and Vehicle Exemptions Matter?," Journal of Human Resources, University of Wisconsin Press, vol. 41(1).
  3. Neil Wrigley & Daniel Warm & Barrie Margetts, 2003. "Deprivation, diet, and food-retail access: findings from the Leeds 'food deserts' study," Environment and Planning A, Pion Ltd, London, vol. 35(1), pages 151-188, January.
  4. Dora Gicheva & Justine Hastings & Sofia Villas-Boas, 2010. "Investigating Income Effects in Scanner Data: Do Gasoline Prices Affect Grocery Purchases?," American Economic Review, American Economic Association, vol. 100(2), pages 480-84, May.
  5. Leibtag, Ephraim S., 2006. "The Impact Of Big-Box Stores On Retail Food Prices And The Consumer Price Index," Economic Research Report 7238, United States Department of Agriculture, Economic Research Service.
  6. Ver Ploeg, Michele & Nulph, David & Williams, Ryan Blake, 2011. "Mapping Food Deserts in the U.S," Amber Waves, United States Department of Agriculture, Economic Research Service, December.
  7. Peter M. Feather, 2003. "Valuing Food Store Access: Policy Implications for the Food Stamp Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 162-172.
  8. Christian Broda & Ephraim Leibtag & David E. Weinstein, 2009. "The Role of Prices in Measuring the Poor's Living Standards," Journal of Economic Perspectives, American Economic Association, vol. 23(2), pages 77-97, Spring.
  9. Susan Chen & Raymond J.G.M. Florax & Samantha Snyder, 2009. "Does Where You Live Make You Fat? Obesity and Access to Chain Grocers," Working Papers 09-11, Purdue University, College of Agriculture, Department of Agricultural Economics.
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