How Are SNAP Benefits Spent? Evidence from a Retail Panel

S-Tier
Journal: American Economic Review
Year: 2018
Volume: 108
Issue: 12
Pages: 3493-3540

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We use a novel retail panel with detailed transaction records to study the effect of the Supplemental Nutrition Assistance Program (SNAP) on house-hold spending. We use administrative data to motivate three approaches to causal inference. The marginal propensity to consume SNAP-eligible food (MPCF) out of SNAP benefits is 0.5 to 0.6. The MPCF out of cash is much smaller. These patterns obtain even for households for whom SNAP benefits are economically equivalent to cash because their benefits are below their food spending. Using a semiparametric framework, we reject the hypothesis that households respect the fungibility of money. A model with mental accounting can match the facts.

Technical Details

RePEc Handle
repec:aea:aecrev:v:108:y:2018:i:12:p:3493-3540
Journal Field
General
Author Count
2
Added to Database
2026-01-25