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2 April 2019 Public Finance Authors: Justine Hastings (Brown University), Jesse M. Shapiro (Brown University)

How do American families spend food benefits?

More than 19 million US households are enrolled in SNAP, the Supplemental Nutrition Assistance Program, which provides monthly benefits to buy groceries at a wide range of retailers. This research tests how recipients’ spending changes after they join the program – and in particular whether SNAP benefits affect their purchases of food by more than an equivalent cash benefit. The results indicate that a family receiving, say, a $200 monthly SNAP benefit can be expected to increase its monthly expenditure on groceries by $100, far more than the $20 expected rise in food spending from a cash benefit of comparable size.

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