IMPACTS OF IN-KIND TRANSFERS SIZE BOOSTS ON ELIGIBLE FOOD EXPENDITURES IN THE UNITED STATES

ABSTRACT

This article examines the causal effects from Supplemental Nutrition Assistance Program (SNAP) benefit enhancements on eligible food expenditures, the fiscal years 2020 and 2021 considered. Through a quasi-experimental research design embedded in a difference-indifference estimation method, the paper uses Consumer Expenditure Diary Survey data to yield interesting results. I find that enrolled households adjust their spending behavior in response to boosts in in-kind transfer. However, on eligible foods, increases in the program allocation levels disproportionately impacted participants spending. Estimates undergone several sensitivity checks which successfully validate their robustness. As policy implication, achieving a more meaningful impact requires food assistance experts to design some threshold of expenses for eligible expenditures.