Do SNAP Households Pay Different Prices throughout the Benefit Month?

Pourya Valizadeh, Travis Smith and Michele Ver Ploeg

Applied Economic Perspectives and Policy, 2021, vol. 43, issue 3, 1051-1075

Abstract: For households participating in the Supplemental Nutrition Assistance Program (SNAP), food expenditures spike upon benefit arrival. We show the price component of expenditure is sensitive to benefit arrival: by the beginning of the fourth week of the benefit month, households pay 20% less on food items. This decline is not induced by changes in shopping behaviors (usage of SNAP, bulk purchases, on‐sale, branded, and discount stores) but rather concentrated among a subset of households with financial constraints and/or a preference for higher‐quality foods. Increased benefit adequacy and/or financial stability for participants could help households smooth their purchasing power.

Date: 2021
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https://doi.org/10.1002/aepp.13094

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Persistent link: https://EconPapers.repec.org/RePEc:wly:apecpp:v:43:y:2021:i:3:p:1051-1075

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