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Issuance and Incidence: SNAP Benefit Cycles and Grocery Prices

Author

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  • Jacob Goldin
  • Tatiana Homonoff
  • Katherine Meckel

Abstract

Many safety net programs issue benefits as monthly lump-sum payments. We investigate how the timing of Supplemental Nutrition Assistance Program (SNAP) benefit issuance affects food purchases and the incidence of the transfer. Using scanner data from a large sample of grocery stores and state and time variation in SNAP issuance schedules, we document large, SNAP-induced intramonth cycles in food expenditures. However, we find that retailers do not adjust prices based on these predictable patterns of demand. Our results therefore suggest that reforming issuance schedules may reduce costs from SNAP-induced demand surges but are unlikely to affect the incidence of SNAP benefits.

Suggested Citation

  • Jacob Goldin & Tatiana Homonoff & Katherine Meckel, 2022. "Issuance and Incidence: SNAP Benefit Cycles and Grocery Prices," American Economic Journal: Economic Policy, American Economic Association, vol. 14(1), pages 152-178, February.
    • Handle: RePEc:aea:aejpol:v:14:y:2022:i:1:p:152-78
    DOI: 10.1257/pol.20190777
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    Cited by:

    1. Zachary Parolin & Megan Curran & Jordan Matsudaira & Jane Waldfogel & Christopher Wimer, 2022. "Estimating Monthly Poverty Rates in the United States," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(4), pages 1177-1203, September.
    2. Tal Gross & Timothy J. Layton & Daniel Prinz, 2022. "The Liquidity Sensitivity of Healthcare Consumption: Evidence from Social Security Payments," American Economic Review: Insights, American Economic Association, vol. 4(2), pages 175-190, June.
    3. 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.
    4. Joel Cuffey & Timothy K. M. Beatty, 2022. "Effects of competing food desert policies on store format choice among SNAP participants," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(4), pages 1485-1511, August.
    5. Xu, Licheng, 2020. "Timing of SNAP disbursement and crime rate in the United States," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304248, Agricultural and Applied Economics Association.
    6. Michael A. Kuhn, 2021. "Electronic Benefit Transfer and Food Expenditure Cycles," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 40(3), pages 744-773, June.
    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.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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