Expenditure Response to Increases in In‐Kind Transfers: Evidence from the Supplemental Nutrition Assistance Program

15 Pages Posted: 15 Apr 2020

See all articles by Tim Beatty

Tim Beatty

University of California, Davis

Charlotte J. Tuttle

affiliation not provided to SSRN

Date Written: March 2015

Abstract

Economic theory predicts that households who receive less in Supplemental Nutrition Assistance Program benefits than they spend on food will treat SNAP benefits as if they were cash. However, empirical tests of these predictions draw different conclusions. In this study, we reexamine this question using recent increases in Supplemental Nutrition Assistance Program benefits, the largest of which was due to the American Recovery and Reinvestment Act of 2009. We find that increases in benefits cause households to increase their food budget share by more than would be predicted by theory. Results are robust to a host of specification tests.

Keywords: Labeling effect, Stimulus Bill, Supplemental Nutrition Assistance Program

Suggested Citation

Beatty, Tim and Tuttle, Charlotte J., Expenditure Response to Increases in In‐Kind Transfers: Evidence from the Supplemental Nutrition Assistance Program (March 2015). American Journal of Agricultural Economics, Vol. 97, Issue 2, pp. 390-404, 2015, Available at SSRN: https://ssrn.com/abstract=3574253 or http://dx.doi.org/10.1093/ajae/aau097

Tim Beatty (Contact Author)

University of California, Davis ( email )

One Shields Avenue
Apt 153
Davis, CA 95616
United States

Charlotte J. Tuttle

affiliation not provided to SSRN

No Address Available

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