It's a Cruel Summer: Household Responses to Reductions in Government Nutrition Assistance
The appropriate size and scope of government nutrition assistance programs is a regular source of debate among policy-makers, and with calls to reduce government benefits, a clear understanding of household responses to any proposed benefit reduction is critical. Exploiting the design of U.S. nutrition assistance programs, we examine how low-income households reallocate their budgets following an exogenous reduction in nutrition assistance benefits. The magnitude of our results suggests that the budget for an average low-income household with children is severely inflexible and likely unable to absorb more than a $2 to $3 reduction in nutrition benefits per child per week.
The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.
Lorenzo Almada & Ian M. McCarthy, 2017. "It's a Cruel Summer: Household Responses to Reductions in Government Nutrition Assistance," Journal of Economic Behavior & Organization, . citation courtesy of