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The SNAP benefit cycle beyond the mean: Substitution across payment sources and distributional heterogeneity

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  • Valizadeh, Pourya
  • Fischer, Bart L.

Abstract

Mean grocery spending by Supplemental Nutrition Assistance Program (SNAP) households peaks at benefit receipt and declines thereafter. Using novel shopping receipt data with observed trip-level tender information across a range of retailers, store formats, and shopping channels, we examine whether households partially smooth grocery spending over the benefit cycle through substitution across payment sources and whether the effects of benefit receipt vary across the grocery spending distribution. We find evidence of smoothing at the extensive margin through modest increases in non-SNAP-funded shopping trips. Distributional analyses reveal more pronounced spending cycles at higher grocery spending quantiles along with suggestive evidence of weaker substitution toward non-SNAP-funded payment sources.

Suggested Citation

  • Valizadeh, Pourya & Fischer, Bart L., 2026. "The SNAP benefit cycle beyond the mean: Substitution across payment sources and distributional heterogeneity," Economics Letters, Elsevier, vol. 267(C).
    • Handle: RePEc:eee:ecolet:v:267:y:2026:i:c:s0165176526003010
    DOI: 10.1016/j.econlet.2026.113105
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    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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