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How did consumers change their grocery spending in response to changes in Supplemental Nutrition Assistance Program benefit generosity?

Author

Listed:
  • Kassandra Martinchek
  • Fernando Hernandez‐Lepe
  • Jonathan Schwabish
  • Elaine Waxman

Abstract

In this paper, we examine the impact of reducing Supplemental Nutrition Assistance Program (SNAP) benefits on grocery purchases using data from Circana. We use an imputed difference‐in‐difference model to exploit state‐level variation in decisions to remove pandemic‐era SNAP emergency allotments to estimate the impact of such policies. We find that SNAP households respond to the removal of SNAP emergency allotments by reducing their grocery expenditures by 4.6% on average and by putting 24.1% more of their grocery bills on credit cards. These results hold for SNAP participants headed by Black and White individuals and for households with children.

Suggested Citation

  • Kassandra Martinchek & Fernando Hernandez‐Lepe & Jonathan Schwabish & Elaine Waxman, 2025. "How did consumers change their grocery spending in response to changes in Supplemental Nutrition Assistance Program benefit generosity?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 47(4), pages 1621-1655, September.
    • Handle: RePEc:wly:apecpp:v:47:y:2025:i:4:p:1621-1655
    DOI: 10.1002/aepp.70006
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    References listed on IDEAS

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    1. Mancino, Lisa & Guthrie, Joanne & Ver Ploeg, Michele & Lin, Biing-Hwan, 2018. "Nutritional Quality of Foods Acquired by Americans: Findings From USDA's National Household Food Acquisition and Purchase Survey," Economic Information Bulletin 276248, United States Department of Agriculture, Economic Research Service.
    2. Andre, Jennifer & Braga, Breno & Martinchek, Kassandra & McKernan, Signe-Mary, 2024. "The effects of state utility shutoff moratoria on credit delinquencies during the COVID-19 pandemic," Journal of Economics and Business, Elsevier, vol. 129(C).
    3. Nord, Mark & Prell, Mark, "undated". "Food Security Improved Following the 2009 ARRA Increase in SNAP Benefits," Economic Research Report 262242, United States Department of Agriculture, Economic Research Service.
    4. Baker, Andrew C. & Larcker, David F. & Wang, Charles C.Y., 2022. "How much should we trust staggered difference-in-differences estimates?," Journal of Financial Economics, Elsevier, vol. 144(2), pages 370-395.
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