Re‐Examining the SNAP Benefit Cycle Allowing for Heterogeneity

Jeffrey Dorfman (), Christian Gregory, Zhongyuan Liu and Ran Huo

Applied Economic Perspectives and Policy, 2019, vol. 41, issue 3, 404-433

Abstract: A well‐known feature of the Supplemental Nutrition Assistance Program (SNAP) is that some recipients spend a disproportionate amount of their monthly benefit early in the month. Using a finite mixture model that optimally separates households into two groups, coupled with the National Household Food Acquisition and Purchase Survey, we re‐examine this spending pattern. Results show that a minority of SNAP recipients cause the benefit cycle by spending, on average, two‐thirds of their monthly benefit within the first four days. A potential implication of these findings is that more frequent SNAP benefit disbursal or educational programs designed to encourage smoother spending over the month might be of benefit to some SNAP households.

Date: 2019
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Citations: View citations in EconPapers (4)

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https://doi.org/10.1093/aepp/ppy013

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Journal Article: Re-Examining the SNAP Benefit Cycle Allowing for Heterogeneity (2019)
Working Paper: Re-Examining the SNAP Benefit Cycle Allowing for Heterogeneity (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:apecpp:v:41:y:2019:i:3:p:404-433

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