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How Do Government Transfer Payments Affect Retail Prices and Welfare ? Evidence from SNAP (Inglés)

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...
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