IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/22977.html
   My bibliography  Save this paper

Who Benefits Most from SNAP? A Study of Food Security and Food Spending

Author

Listed:
  • Partha Deb
  • Christian A. Gregory

Abstract

We study the effects of SNAP participation on food insecurity and food spending using finite mixture models that allow for a priori unspecified heterogeneous effects. We identify a low food security subgroup comprising a third of the population for whom SNAP participation increases the probability of high food security by 20-30 percentage points. There is no affect of SNAP on the remaining two-thirds of the population. SNAP increases food spending in the previous week by $50-$65 for a low modal spending subgroup comprising two-thirds of the population, with no effect for the remaining third of the population.

Suggested Citation

  • 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.
  • Handle: RePEc:nbr:nberwo:22977
    Note: PE
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w22977.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
    3. Richard A. DePolt & Robert A. Moffitt & David C. Ribar, 2009. "Food Stamps, Temporary Assistance For Needy Families And Food Hardships In Three American Cities," Pacific Economic Review, Wiley Blackwell, vol. 14(4), pages 445-473, October.
    4. Barrett, Christopher B., 2002. "Food security and food assistance programs," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 40, pages 2103-2190, Elsevier.
    5. Steven B. Caudill & Daniel M. Gropper & Valentina Hartarska, 2009. "Which Microfinance Institutions Are Becoming More Cost Effective with Time? Evidence from a Mixture Model," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 41(4), pages 651-672, June.
    6. 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.
    7. Richard W. Blundell & James L. Powell, 2004. "Endogeneity in Semiparametric Binary Response Models," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 71(3), pages 655-679.
    8. Terza, Joseph V. & Basu, Anirban & Rathouz, Paul J., 2008. "Two-stage residual inclusion estimation: Addressing endogeneity in health econometric modeling," Journal of Health Economics, Elsevier, vol. 27(3), pages 531-543, May.
    9. Arie Kapteyn & Peter Kooreman & Rob Willemse, 1988. "Some Methodological Issues in the Implementation of Subjective Poverty Definitions," Journal of Human Resources, University of Wisconsin Press, vol. 23(2), pages 222-242.
    10. 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.
    11. Moffitt, Robert, 1989. "Estimating the Value of an In-Kind Transfer: The Case of Food Stamps," Econometrica, Econometric Society, vol. 57(2), pages 385-409, March.
    12. Deb, Partha & Gallo, William T. & Ayyagari, Padmaja & Fletcher, Jason M. & Sindelar, Jody L., 2011. "The effect of job loss on overweight and drinking," Journal of Health Economics, Elsevier, vol. 30(2), pages 317-327, March.
    13. Chad D. Meyerhoefer & Muzhe Yang, 2011. "The Relationship between Food Assistance and Health: A Review of the Literature and Empirical Strategies for Identifying Program Effects," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(3), pages 304-344.
    14. Brent Kreider & John V. Pepper & Craig Gundersen & Dean Jolliffe, 2012. "Identifying the Effects of SNAP (Food Stamps) on Child Health Outcomes When Participation Is Endogenous and Misreported," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 107(499), pages 958-975, September.
    15. Bettina Grün & Friedrich Leisch, 2008. "Identifiability of Finite Mixtures of Multinomial Logit Models with Varying and Fixed Effects," Journal of Classification, Springer;The Classification Society, vol. 25(2), pages 225-247, November.
    16. 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.
    17. Steven T. Yen & Margaret Andrews & Zhuo Chen & David B. Eastwood, 2008. "Food Stamp Program Participation and Food Insecurity: An Instrumental Variables Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(1), pages 117-132.
    18. Padmaja Ayyagari & Partha Deb & Jason Fletcher & William Gallo & Jody L. Sindelar, 2013. "Understanding Heterogeneity In Price Elasticities In The Demand For Alcohol For Older Individuals," Health Economics, John Wiley & Sons, Ltd., vol. 22(1), pages 89-105, January.
    19. Deb, Partha & Trivedi, Pravin K, 1997. "Demand for Medical Care by the Elderly: A Finite Mixture Approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(3), pages 313-336, May-June.
    20. Whitney K. Newey & James L. Powell & Francis Vella, 1999. "Nonparametric Estimation of Triangular Simultaneous Equations Models," Econometrica, Econometric Society, vol. 67(3), pages 565-604, May.
    21. Wilde, Parke E. & Troy, Lisa M. & Rogers, Beatrice L., 2008. "AJAE Appendix for “Food Stamps and Food Spending: an Engel Function Approach”," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 91(2), pages 1-9, June.
    22. Adrian Bruhin & Helga Fehr-Duda & Thomas Epper, 2010. "Risk and Rationality: Uncovering Heterogeneity in Probability Distortion," Econometrica, Econometric Society, vol. 78(4), pages 1375-1412, July.
    23. Coleman-Jensen, Alisha & Rabbitt, Matthew P. & Gregory, Christian & Singh, Anita, 2015. "Household Food Security in the United States in 2014," Economic Research Report 262204, United States Department of Agriculture, Economic Research Service.
    24. 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.
    25. Lee, Sokbae, 2007. "Endogeneity in quantile regression models: A control function approach," Journal of Econometrics, Elsevier, vol. 141(2), pages 1131-1158, December.
    26. J. William Levedahl, 1995. "A Theoretical and Empirical Evaluation of the Functional Forms Used to Estimate the Food Expenditure Equation of Food Stamp Recipients," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 960-968.
    27. Ariun Ishdorj & Lindsey Higgins, 2015. "Children¡¯s Food Security and Participation in the National School Lunch Program," Applied Economics and Finance, Redfame publishing, vol. 2(1), pages 119-128, February.
    28. Wedel, M, et al, 1993. "A Latent Class Poisson Regression Model for Heterogeneous Count Data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 8(4), pages 397-411, Oct.-Dec..
    29. Lindrooth, Richard C. & Weisbrod, Burton A., 2007. "Do religious nonprofit and for-profit organizations respond differently to financial incentives? The hospice industry," Journal of Health Economics, Elsevier, vol. 26(2), pages 342-357, March.
    30. Coleman-Jensen, Alisha & Nord, Mark, 2013. "Food Insecurity Among Households With Working-Age Adults With Disabilities," Economic Research Report 142955, United States Department of Agriculture, Economic Research Service.
    31. 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.
    32. Coleman-Jensen, Alisha & Gregory, Christian & Singh, Anita, 2014. "Household Food Security in the United States in 2013," Economic Research Report 183589, 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. Sawadogo, Relwendé & Semedo, Gervasio, 2021. "Financial inclusion, income inequality, and institutions in sub-Saharan Africa: Identifying cross-country inequality regimes," International Economics, Elsevier, vol. 167(C), pages 15-28.
    2. Colleen Heflin & Michah W. Rothbart & Mattie Mackenzie-Liu, 2022. "Below the Tip of the Iceberg: Examining Early Childhood Participation in SNAP and TANF from Birth to Age Six," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 41(2), pages 729-755, April.
    3. Rasmane Ouedraogo & Windemanegda Sandrine Sourouema & Hamidou Sawadogo, 2021. "Aid, growth and institutions in Sub‐Saharan Africa: New insights using a multiple growth regime approach," The World Economy, Wiley Blackwell, vol. 44(1), pages 107-142, January.

    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. 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.
    2. Deb, Partha & Gregory, Christian A., 2018. "Heterogeneous impacts of the Supplemental Nutrition Assistance Program on food insecurity," Economics Letters, Elsevier, vol. 173(C), pages 55-60.
    3. Lusk, Jayson L. & Weaver, Amanda, 2017. "An experiment on cash and in-kind transfers with application to food assistance programs," Food Policy, Elsevier, vol. 68(C), pages 186-192.
    4. 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.
    5. 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.
    6. Burney, Shaheer & Boehm, Rebecca & Lopez, Rigoberto, 2021. "The impact of the ACA Medicaid expansion on SNAP participation," Food Policy, Elsevier, vol. 101(C).
    7. 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).
    8. Irma Arteaga & Colleen Heflin & Leslie Hodges, 2018. "SNAP Benefits and Pregnancy-Related Emergency Room Visits," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 37(6), pages 1031-1052, December.
    9. 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," USDA Miscellaneous 314934, United States Department of Agriculture.
    10. Almada, Lorenzo N. & Tchernis, Rusty, 2018. "Measuring effects of SNAP on obesity at the intensive margin," Economics & Human Biology, Elsevier, vol. 31(C), pages 150-163.
    11. Partha Deb & Carmen Vargas, 2016. "Who Benefits from Calorie Labeling? An Analysis of its Effects on Body Mass," NBER Working Papers 21992, National Bureau of Economic Research, Inc.
    12. Bronchetti, Erin T. & Christensen, Garret & Hoynes, Hilary W., 2019. "Local food prices, SNAP purchasing power, and child health," Journal of Health Economics, Elsevier, vol. 68(C).
    13. Atella, Vincenzo & Deb, Partha & Kopinska, Joanna, 2019. "Heterogeneity in long term health outcomes of migrants within Italy," Journal of Health Economics, Elsevier, vol. 63(C), pages 19-33.
    14. Wilson, Norbert L. W. & Zheng, Yuqing & Burney, Shaheer & Kaiser, Harry M., 2016. "Do Grocery Food Sales Taxes Cause Food Insecurity?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235324, Agricultural and Applied Economics Association.
    15. 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.
    16. Robert A. Moffitt & David C. Ribar, 2016. "Rasch Analyses of Very Low Food Security among Households and Children in the Three City Study," Southern Economic Journal, John Wiley & Sons, vol. 82(4), pages 1123-1146, April.
    17. Gregory, Christian A. & Deb, Partha, 2015. "Does SNAP improve your health?," Food Policy, Elsevier, vol. 50(C), pages 11-19.
    18. Otto Lenhart, 2021. "The effects of paid family leave on food insecurity—evidence from California," Review of Economics of the Household, Springer, vol. 19(3), pages 615-639, September.
    19. Zhang, Jun & Yen, Steven T., 2017. "Supplemental Nutrition Assistance Program and food insecurity among families with children," Journal of Policy Modeling, Elsevier, vol. 39(1), pages 52-64.
    20. Jeehoon Han, 2016. "The Impact of SNAP on Material Hardships: Evidence From Broad‐Based Categorical Eligibility Expansions," Southern Economic Journal, John Wiley & Sons, vol. 83(2), pages 464-486, October.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:nbr:nberwo:22977. 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.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.