How Do Government Transfer Payments Affect Retail Prices and Welfare? : Evidence from SNAP
This paper studies the effect of the Supplemental Nutrition Assistance Program (SNAP) on retail prices in the United States. State-level program adjustments motivate the identification strategy. A 1 percent increase in benefits per population raise...
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World Bank, Washington, DC
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099456206072258657/IDU0a6985a3f0ac4a04d2809d4801775fc4a42d7 http://hdl.handle.net/10986/37515 |
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okr-10986-375152022-06-10T05:10:35Z How Do Government Transfer Payments Affect Retail Prices and Welfare? : Evidence from SNAP Leung, Justin H. Hee Kwon (Samuel) Seo CONSUMPTION FOOD STAMPS INCIDENCE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP) FOOD PRICE FLUCTUATION FOOD SECURITY SOCIAL SAFETY NET ELECTRONIC FOOD BENEFITS REAL VALUE OF SNAP FOOD INFLATION GOVERNMENT TRANSFER SPENDING POWER This paper studies the effect of the Supplemental Nutrition Assistance Program (SNAP) on retail prices in the United States. State-level program adjustments motivate the identification strategy. A 1 percent increase in benefits per population raises grocery prices by a persistent 0.08 percent. A calibrated partial-equilibrium model implies a marginal benefit dollar raises a recipient’s consumer surplus from groceries by $0.7, producer surplus by $0.5, and lowers each non-SNAP consumer’s surplus by $0.05, because of a large marginal propensity to consume food out of SNAP, low elasticities of demand, and moderate market power. To guarantee the real intended spending power on food, benefits should be increased by 7 percent. 2022-06-09T20:27:14Z 2022-06-09T20:27:14Z 2022-06 Working Paper http://documents.worldbank.org/curated/en/099456206072258657/IDU0a6985a3f0ac4a04d2809d4801775fc4a42d7 http://hdl.handle.net/10986/37515 English Policy Research Working Papers;100075 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Policy Research Working Paper Publications & Research United States |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English |
| topic |
CONSUMPTION FOOD STAMPS INCIDENCE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP) FOOD PRICE FLUCTUATION FOOD SECURITY SOCIAL SAFETY NET ELECTRONIC FOOD BENEFITS REAL VALUE OF SNAP FOOD INFLATION GOVERNMENT TRANSFER SPENDING POWER |
| spellingShingle |
CONSUMPTION FOOD STAMPS INCIDENCE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP) FOOD PRICE FLUCTUATION FOOD SECURITY SOCIAL SAFETY NET ELECTRONIC FOOD BENEFITS REAL VALUE OF SNAP FOOD INFLATION GOVERNMENT TRANSFER SPENDING POWER Leung, Justin H. Hee Kwon (Samuel) Seo How Do Government Transfer Payments Affect Retail Prices and Welfare? : Evidence from SNAP |
| geographic_facet |
United States |
| relation |
Policy Research Working Papers;100075 |
| description |
This paper studies the effect of the
Supplemental Nutrition Assistance Program (SNAP) on retail
prices in the United States. State-level program adjustments
motivate the identification strategy. A 1 percent increase
in benefits per population raises grocery prices by a
persistent 0.08 percent. A calibrated partial-equilibrium
model implies a marginal benefit dollar raises a recipient’s
consumer surplus from groceries by $0.7, producer surplus by
$0.5, and lowers each non-SNAP consumer’s surplus by $0.05,
because of a large marginal propensity to consume food out
of SNAP, low elasticities of demand, and moderate market
power. To guarantee the real intended spending power on
food, benefits should be increased by 7 percent. |
| format |
Working Paper |
| author |
Leung, Justin H. Hee Kwon (Samuel) Seo |
| author_facet |
Leung, Justin H. Hee Kwon (Samuel) Seo |
| author_sort |
Leung, Justin H. |
| title |
How Do Government Transfer Payments Affect Retail Prices and Welfare? : Evidence from SNAP |
| title_short |
How Do Government Transfer Payments Affect Retail Prices and Welfare? : Evidence from SNAP |
| title_full |
How Do Government Transfer Payments Affect Retail Prices and Welfare? : Evidence from SNAP |
| title_fullStr |
How Do Government Transfer Payments Affect Retail Prices and Welfare? : Evidence from SNAP |
| title_full_unstemmed |
How Do Government Transfer Payments Affect Retail Prices and Welfare? : Evidence from SNAP |
| title_sort |
how do government transfer payments affect retail prices and welfare? : evidence from snap |
| publisher |
World Bank, Washington, DC |
| publishDate |
2022 |
| url |
http://documents.worldbank.org/curated/en/099456206072258657/IDU0a6985a3f0ac4a04d2809d4801775fc4a42d7 http://hdl.handle.net/10986/37515 |
| _version_ |
1764487374907113472 |