IDEAS home Printed from https://ideas.repec.org/p/ags/uersrr/327185.html
   My bibliography  Save this paper

Impact of USDA's Supplemental Nutrition Assistance Program (SNAP) on Rural and Urban Economies in the Aftermath of the Great Recession

Author

Listed:
  • Vogel, Stephen
  • Miller, Cristina
  • Ralston, Katherine

Abstract

The Supplemental Nutrition Assistance Program (SNAP) serves as a safety net for low-income households and an automatic stabilizer during economic downturns. This report addresses the question: during the aftermath of the Great Recession, 2009-14, what were the impacts of the increase in SNAP benefits on employment, output, and household incomes for the rural economy compared to the urban economy?

Suggested Citation

  • Vogel, Stephen & Miller, Cristina & Ralston, Katherine, 2021. "Impact of USDA's Supplemental Nutrition Assistance Program (SNAP) on Rural and Urban Economies in the Aftermath of the Great Recession," Economic Research Report 327185, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uersrr:327185
    DOI: 10.22004/ag.econ.327185
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/327185/files/err-296.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.327185?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Joanna P. Ganning & Kathy Baylis & Bumsoo Lee, 2013. "Spread And Backwash Effects For Nonmetropolitan Communities In The U.S," Journal of Regional Science, Wiley Blackwell, vol. 53(3), pages 464-480, August.
    2. Alan J. Auerbach & Yuriy Gorodnichenko, 2012. "Measuring the Output Responses to Fiscal Policy," American Economic Journal: Economic Policy, American Economic Association, vol. 4(2), pages 1-27, May.
    3. John B. Taylor, 2009. "The Lack Of An Empirical Rationale For A Revival Of Discretionary Fiscal Policy," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 10(02), pages 9-13, July.
    4. Smallwood, David & Hanson, Kenneth & Blaylock, James & Kuhn, Betsey & Vogel, Steve, 1995. "Proposed Reforms in the Food Stamp Program: Economic Impacts on Agriculture and the Economy of The Work Opportunity Act of 1995," Staff Reports 278790, United States Department of Agriculture, Economic Research Service.
    5. Kory Kroft & Fabian Lange & Matthew J. Notowidigdo & Lawrence F. Katz, 2016. "Long-Term Unemployment and the Great Recession: The Role of Composition, Duration Dependence, and Nonparticipation," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 7-54.
    6. Timothy K.M. Beatty & Charlotte J. Tuttle, 2015. "Expenditure Response to Increases in In-Kind Transfers: Evidence from the Supplemental Nutrition Assistance Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(2), pages 390-404.
    7. Marianne Bitler & Hilary Hoynes, 2016. "The More Things Change, the More They Stay the Same? The Safety Net and Poverty in the Great Recession," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 403-444.
    8. 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.
    9. Travis A. Smith & Joshua P. Berning & Xiaosi Yang & Gregory Colson & Jeffrey H. Dorfman, 2016. "The Effects of Benefit Timing and Income Fungibility on Food Purchasing Decisions among Supplemental Nutrition Assistance Program Households," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(2), pages 564-580.
    10. Moffitt, Robert & Ribar, David C., 2009. "Variable Effects of Earnings Volatility on Food Stamp Participation: Technical Report," Contractor and Cooperator Reports 292072, United States Department of Agriculture, Economic Research Service.
    11. Paul Beaudry & David A. Green & Benjamin M. Sand, 2016. "The Great Reversal in the Demand for Skill and Cognitive Tasks," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 199-247.
    12. Sebastian Gechert & Ansgar Rannenberg, 2018. "Which Fiscal Multipliers Are Regime‐Dependent? A Meta‐Regression Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 32(4), pages 1160-1182, September.
    13. David L. Barkley & Mark S. Henry & Shuming Bao, 1996. "Identifying "Spread" versus "Backwash" Effects in Regional Economic Areas: A Density Functions Approach," Land Economics, University of Wisconsin Press, vol. 72(3), pages 336-357.
    14. David Autor & David Dorn & Gordon Hanson, 2019. "When Work Disappears: Manufacturing Decline and the Falling Marriage Market Value of Young Men," American Economic Review: Insights, American Economic Association, vol. 1(2), pages 161-178, September.
    15. Hughes, David W. & Litz, Vaneska N., 1996. "Rural-Urban Economic Linkages for Agriculture and Food Processing in the Monroe, Louisiana, Functional Economic Area," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 28(2), pages 337-355, December.
    16. Brinca, Pedro & Holter, Hans A. & Krusell, Per & Malafry, Laurence, 2016. "Fiscal multipliers in the 21st century," Journal of Monetary Economics, Elsevier, vol. 77(C), pages 53-69.
    17. Maureen Kilkenny, 1993. "Rural/Urban Effects of Terminating Farm Subsidies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(4), pages 968-980.
    18. T. D. Stanley & Stephen B. Jarrell, 2005. "Meta‐Regression Analysis: A Quantitative Method of Literature Surveys," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 299-308, July.
    19. Bachmann, Rüdiger & Sims, Eric R., 2012. "Confidence and the transmission of government spending shocks," Journal of Monetary Economics, Elsevier, vol. 59(3), pages 235-249.
    20. Chang K. Seung, 2014. "Measuring Spillover Effects Of Shocks To The Alaska Economy: An Inter-Regional Social Accounting Matrix (Irsam) Model Approach," Economic Systems Research, Taylor & Francis Journals, vol. 26(2), pages 224-238, June.
    21. Carlson, Andrea & Dong, Diansheng & Stewart, Hayden & Frazao, Betsy, 2015. "Following Dietary Guidance Need Not Cost More—But Many Americans Would Need To Re-Allocate Their Food Budgets," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, issue 08, pages 1-1, September.
    22. John B. Taylor, 2000. "Reassessing Discretionary Fiscal Policy," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 21-36, Summer.
    23. Deborah Roberts, 2000. "The Spatial Diffusion of Secondary Impacts: Rural-Urban Spillovers in Grampian, Scotland," Land Economics, University of Wisconsin Press, vol. 76(3), pages 395-412.
    24. Farrigan, Tracey & Hertz, Thomas, 2016. "Understanding the Rise in Rural Child Poverty, 2003-14," Economic Research Report 262196, United States Department of Agriculture, Economic Research Service.
    25. Tuttle, Charlotte, 2016. "Changes in Food-At-Home Spending by SNAP Participants After the Stimulus Act of 2009," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, issue 11, pages 1-1, December.
    26. Sullivan, Patrick & Hellerstein, Daniel & Hansen, LeRoy T. & Johansson, Robert C. & Koenig, Steven R. & Lubowski, Ruben N. & McBride, William D. & McGranahan, David A. & Roberts, Michael J. & Vogel, S, 2004. "The Conservation Reserve Program: Economic Implications for Rural America," Agricultural Economic Reports 33987, United States Department of Agriculture, Economic Research Service.
    27. 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.
    28. Jonathan A. Parker, 2011. "On Measuring the Effects of Fiscal Policy in Recessions," Journal of Economic Literature, American Economic Association, vol. 49(3), pages 703-718, September.
    29. Nader S. Kabbani & Myra Yazbeck Kmeid, 2005. "The Role of Food Assistance in Helping Food Insecure Households Escape Hunger ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(3), pages 439-445.
    30. Hertz, Thomas & Kusmin, Lorin & Marré, Alexander & Parker, Timothy, 2014. "Rural Employment Trends in Recession and Recovery," Economic Research Report 262212, United States Department of Agriculture, Economic Research Service.
    31. Craig Gundersen & David Ribar, 2011. "Food Insecurity And Insufficiency At Low Levels Of Food Expenditures," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(4), pages 704-726, December.
    32. Justine Hastings & Jesse M. Shapiro, 2018. "How Are SNAP Benefits Spent? Evidence from a Retail Panel," American Economic Review, American Economic Association, vol. 108(12), pages 3493-3540, December.
    33. David W. Hughes & David W. Holland, 1994. "Core-Periphery Economic Linkage: A Measure of Spread and Possible Backwash Effects for the Washington Economy," Land Economics, University of Wisconsin Press, vol. 70(3), pages 364-377.
    34. Hanson, Kenneth & Golan, Elise H. & Vogel, Stephen J. & Olmsted, Jennifer, 2002. "Tracing The Impacts Of Food Assistance Programs On Agriculture And Consumers: A Computable General Equilibrium Model," Food Assistance and Nutrition Research Reports 33831, United States Department of Agriculture, Economic Research Service.
    35. John B. Parr, 1973. "Growth Poles, Regional Development, And Central Place Theory," Papers in Regional Science, Wiley Blackwell, vol. 31(1), pages 173-212, January.
    36. Joshua Leftin & Nancy Wemmerus & James Mabli & Thomas Godfrey & Stephen Tordella, 2014. "Dynamics of Supplemental Nutrition Assistance Program (SNAP) Participation from 2008 to 2012," Mathematica Policy Research Reports 1f268418ccd140969e6a96506, Mathematica Policy Research.
    37. Betsey A. Kuhn, 1996. "Policy Watch: The Food Stamp Program and Welfare Reform," Journal of Economic Perspectives, American Economic Association, vol. 10(2), pages 189-198, Spring.
    38. Robert J. Gordon, 1993. "The Jobless Recovery: Does It Signal a New Era of Productivity-led Growth?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 24(1), pages 271-316.
    39. Mark Partridge & Ray D. Bollman & M. Rose Olfert & Alessandro Alasia, 2007. "Riding the Wave of Urban Growth in the Countryside: Spread, Backwash, or Stagnation?," Land Economics, University of Wisconsin Press, vol. 83(2), pages 128-152.
    40. G. Lindberg & P. Midmore & Y. Surry, 2012. "Agriculture’s Inter-industry Linkages, Aggregation Bias and Rural Policy Reforms," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(3), pages 552-575, September.
    41. Lawrence Christiano & Martin Eichenbaum & Sergio Rebelo, 2011. "When Is the Government Spending Multiplier Large?," Journal of Political Economy, University of Chicago Press, vol. 119(1), pages 78-121.
    42. Giovanni Caggiano & Efrem Castelnuovo & Valentina Colombo & Gabriela Nodari, 2015. "Estimating Fiscal Multipliers: News From A Non‐linear World," Economic Journal, Royal Economic Society, vol. 0(584), pages 746-776, May.
    43. J. Bradford DeLong & Lawrence H. Summers, 2012. "Fiscal Policy in a Depressed Economy," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 43(1 (Spring), pages 233-297.
    44. Peter Ganong & Jeffrey B. Liebman, 2018. "The Decline, Rebound, and Further Rise in SNAP Enrollment: Disentangling Business Cycle Fluctuations and Policy Changes," American Economic Journal: Economic Policy, American Economic Association, vol. 10(4), pages 153-176, November.
    45. Nord, Mark & Prell, Mark, 2011. "Food Security Improved Following the 2009 ARRA Increase in SNAP Benefits," Economic Research Report 262242, United States Department of Agriculture, Economic Research Service.
    46. Tuttle, Charlotte, 2016. "The Stimulus Act of 2009 and Its Effect on Food-At-Home Spending by SNAP Participants," Economic Research Report 262193, United States Department of Agriculture, Economic Research Service.
    47. Caroline Ratcliffe & Signe-Mary McKernan & Sisi Zhang, 2011. "How Much Does the Supplemental Nutrition Assistance Program Reduce Food Insecurity?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(4), pages 1082-1098.
    48. Hertz, Thomas & Kusmin, Lorin & Marré, Alexander & Parker, Timothy, 2014. "Rural Employment in Recession and Recovery," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, issue 09, pages 1-1, October.
    49. Andrew Foote & Michel Grosz & Ann Stevens, 2019. "Locate Your Nearest Exit: Mass Layoffs and Local Labor Market Response," ILR Review, Cornell University, ILR School, vol. 72(1), pages 101-126, January.
    50. Leeuwen, E.S. van & Nijkamp, P., 2009. "Social Accounting Matrices; The development and application of SAMs at the local level," Serie Research Memoranda 0045, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    51. Todd, Jessica E. & Newman, Constance & Ver Ploeg, Michele, 2010. "Changing Participation in Food Assistance Programs Among Low-Income Children After Welfare Reform," Economic Research Report 58613, United States Department of Agriculture, Economic Research Service.
    52. Hanson, Kenneth & Gundersen, Craig, 2002. "Issues In Food Assistance - How Unemployment Affects The Food Stamp Program," Food Assistance and Nutrition Research Reports 262257, United States Department of Agriculture, Economic Research Service.
    53. Jolliffe, Dean, 2006. "The Cost of Living and the Geographic Distribution of Poverty," Economic Research Report 7254, United States Department of Agriculture, Economic Research Service.
    54. Gordon Mulligan & Mark Partridge & John Carruthers, 2012. "Central place theory and its reemergence in regional science," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(2), pages 405-431, April.
    55. Pontus Rendahl, 2016. "Fiscal Policy in an Unemployment Crisis," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 83(3), pages 1189-1224.
    56. Hanson, Kenneth & Oliveira, Victor, 2012. "How Economic Conditions Affect Participation in USDA Nutrition Assistance Programs," Economic Information Bulletin 134682, United States Department of Agriculture, Economic Research Service.
    57. Round, Jeffrey I, 1985. "Decomposing Multipliers for Economic Systems Involving Regional and World Trade," Economic Journal, Royal Economic Society, vol. 95(378), pages 383-399, June.
    58. Pender, John & Young, Young & Tood, Jessica E. & Miller, Cristina, 2019. "The Impacts of Supplemental Nutrition Assistance Program Redemptions on County-Level Employment," Economic Research Report 289135, United States Department of Agriculture, Economic Research Service.
    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. Suttles, Shellye A. & Babb, Angela & Knudsen, Daniel, 2022. "Submitted and Denied: Understanding Variation in Case Status Across Supplemental Nutrition Assistance Program (SNAP) Applications," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322195, 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. Valizadeh, Pourya & Smith, Travis A., 2017. "How Did the American Recovery and Reinvestment Act (ARRA) Impact the Material Well-being of SNAP Participants? A Distributional Approach," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258496, Agricultural and Applied Economics Association.
    2. El Mostafa Bentour, 2022. "The effects of public debt accumulation and business cycle on government spending multipliers," Applied Economics, Taylor & Francis Journals, vol. 54(19), pages 2231-2256, April.
    3. Partha Deb & Christian A. Gregory, 2016. "Who Benefits Most from SNAP? A Study of Food Security and Food Spending," NBER Working Papers 22977, National Bureau of Economic Research, Inc.
    4. 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.
    5. Richard McManus, 2018. "Fiscal Trade‐Offs: The Relationship Between Output and Debt in Policy Interventions," Manchester School, University of Manchester, vol. 86(S1), pages 50-82, September.
    6. Efrem Castelnuovo & Guay Lim, 2019. "What Do We Know About the Macroeconomic Effects of Fiscal Policy? A Brief Survey of the Literature on Fiscal Multipliers," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 52(1), pages 78-93, March.
    7. Tuttle, Charlotte, 2016. "The Stimulus Act of 2009 and Its Effect on Food-At-Home Spending by SNAP Participants," Economic Research Report 262193, United States Department of Agriculture, Economic Research Service.
    8. Paolo Veneri & Vicente Ruiz, 2016. "Urban-To-Rural Population Growth Linkages: Evidence From Oecd Tl3 Regions," Journal of Regional Science, Wiley Blackwell, vol. 56(1), pages 3-24, January.
    9. Cardi, Olivier & Restout, Romain, 2023. "Sectoral fiscal multipliers and technology in open economy," Journal of International Economics, Elsevier, vol. 144(C).
    10. 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).
    11. Weerasooriya, Senal A. & Reimer, Jeffrey J., 2016. "Effects of the Supplemental Nutrition Assistance Program on Rural and Urban Areas in Oregon," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235751, Agricultural and Applied Economics Association.
    12. Dell'Erba, Salvatore & Koloskova, Ksenia & Poplawski-Ribeiro, Marcos, 2018. "Medium-term fiscal multipliers during protracted economic contractions," Journal of Macroeconomics, Elsevier, vol. 56(C), pages 35-52.
    13. Das, Debasmita, 2019. "SNAP Work Requirement and Food Insecurity," MPRA Paper 109964, University Library of Munich, Germany, revised 01 Oct 2021.
    14. Felix Reichling & Charles Whalen, 2015. "The Fiscal Multiplier and Economic Policy Analysis in the United States: Working Paper 2015-02," Working Papers 49925, Congressional Budget Office.
    15. Oliveira, Victor & Prell, Mark & Tiehen, Laura & Smallwood, David, 2018. "Design Issues in USDA’s Supplemental Nutrition Assistance Program: Looking Ahead by Looking Back," Economic Research Report 276253, United States Department of Agriculture, Economic Research Service.
    16. Hudak, Katelin M. & Racine, Elizabeth F., 2021. "Do additional SNAP benefits matter for child weight?: Evidence from the 2009 benefit increase," Economics & Human Biology, Elsevier, vol. 41(C).
    17. Burney, Shaheer, 2018. "In-kind benefits and household behavior: The impact of SNAP on food-away-from-home consumption," Food Policy, Elsevier, vol. 75(C), pages 134-146.
    18. Pourya Valizadeh & Travis A Smith, 2020. "How Did The American Recovery and Reinvestment Act Affect the Material Well‐Being of SNAP Participants? A Distributional Approach," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(3), pages 455-476, September.
    19. Lucie Schmidt & Lara Shore-Sheppard & Tara Watson, 2016. "The Effect of Safety-Net Programs on Food Insecurity," Journal of Human Resources, University of Wisconsin Press, vol. 51(3), pages 589-614.
    20. Charles J. Whalen & Felix Reichling, 2015. "The Fiscal Multiplier And Economic Policy Analysis In The United States," Contemporary Economic Policy, Western Economic Association International, vol. 33(4), pages 735-746, October.

    More about this item

    Keywords

    Food Security and Poverty;

    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:uersrr:327185. 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/ersgvus.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.