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How Does the Supplemental Nutrition Assistance Program Affect the U.S. Economy?

Published online by Cambridge University Press:  15 September 2016

Jeffrey J. Reimer ,
Senal Weerasooriya  and
Tyler T. West
Jeffrey J. Reimer*
Affiliation:
Department of Applied Economics at Oregon State University
Senal Weerasooriya
Affiliation:
Department of Applied Economics at Oregon State University
Tyler T. West
Affiliation:
Department of Applied Economics at Oregon State University
*
Correspondence: Jeff Reimer ▪ Department of Applied Economics ▪ Oregon State University ▪ 213 Ballard Extension Hall ▪ Corvallis, OR 97331 ▪ Phone 541.737.1415 ▪ Emailjeff.reimer@oregonstate.edu.
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Abstract

The impact of the Supplemental Nutrition Assistance Program (SNAP) on the national economy is examined using a general equilibrium model and comparing measures of the economy from 2010 to a simulation of that economy without SNAP. Without the SNAP program, the overall size of the economy hardly differs—demand for labor increases slightly. However, households that would be eligible for SNAP experience a net loss. They have 5.5 percent less disposable income while ineligible households have approximately 1 percent more income without SNAP, and output of products eligible for purchase with SNAP funds declines approximately one billion dollars.

Keywords

consumer demandfood assistancegeneral equilibriumpolicypovertySNAP
Type
Research Article
Information
Agricultural and Resource Economics Review , Volume 44 , Issue 3 , December 2015 , pp. 233 - 252
Copyright
Copyright © 2015 Northeastern Agricultural and Resource Economics Association 

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