Nutrition Benefits Raise Grocery Prices, Shift Welfare
How do Government Transfer Payments Affect Retail Prices and Welfare? Evidence from SNAP in the US
Tags: CUHK Business School, Hong Kong, Healthcare & Lifesciences, Consumer Goods & Services
This study examines how the Supplemental Nutrition Assistance Program (SNAP) impacts retail prices. A 1% increase in SNAP benefits raises grocery prices by 0.08%, benefiting both SNAP consumers and producers, but slightly lowering non-SNAP consumer welfare. The study finds that SNAP increases demand for groceries, leading to price adjustments that benefit SNAP participants while creating spillover effects on non-participants. It highlights the program's broader economic implications on both SNAP and non-SNAP consumers.
IP Type or Form Factor: Discovery & Research; Platform
TRL: 4 - minimum viable product built in lab
Industry or Tech Area: Public Health & Universal Healthcare; Retail & E-Commerce
