Abstract

This paper examines the relationship between SNAP participation and prices paid for food items. To test this relationship, we develop an expensiveness index following the method of Aguiar and Hurst (2007) and use the FoodAPS data set. Using both the ordinary least squares method and controlling for endogeneity using an instrumental variables approach, we found SNAP participation did not hold a statistically significant relationship with the prices paid for food items when we controlled for consumer behavior and food market variables. This suggests that SNAP participants are not systematically disadvantaged in their food purchases. Additional efforts to further educate SNAP participants of effective shopping and budgeting habits may be fruitful in helping households pay comparatively lower food prices.

Document Type

Research Paper

Publication Date

2016

Discussion Paper Number

DP 2016-07

Notes/Citation Information

This project was supported through funding by the U.S. Department of Agriculture, Economic Research Service and the Food Nutrition Service, Agreement Numbers 58-5000-1-0050 and 58-5000-3-0066. The opinions and conclusions expressed herein are solely those of the authors and should not be construed as representing the opinions or policies of the sponsoring agency.

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