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

  • Jeffrey J. Reimer (a1), Senal Weerasooriya (a1) and Tyler T. West (a1)

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.

Corresponding author
Correspondence: Jeff ReimerDepartment of Applied EconomicsOregon State University213 Ballard Extension HallCorvallis, OR 97331Phone 541.737.1415Email
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Agricultural and Resource Economics Review
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