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The Impact of Supplemental Nutrition Assistance Program Policies on Asset Holdings
Author(s) -
Todd Jessica E,
Jo Young,
Boohaker James Richard
Publication year - 2019
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/ppy014
Subject(s) - asset (computer security) , business , population , distribution (mathematics) , limit (mathematics) , supplemental nutrition assistance program , finance , economics , geography , food insecurity , food security , computer science , mathematics , computer security , archaeology , agriculture , mathematical analysis , demography , sociology
Many states have increased the asset limits used to determine eligibility in the Supplemental Nutrition Assistance Program (SNAP) in recent years. Using three panels of the Survey of Income and Program Participation, we estimate the effect of increases in the SNAP vehicle and total asset limits on vehicle and financial assets among low‐education families. We find that higher vehicle limits, together with the elimination of the total asset limit, increase the probability that a family owns a vehicle. Moreover, eliminating the total asset limit increases the value held in liquid accounts. The effect on liquid assets is greater among families in metro areas and for those at the lower end of the asset distribution. The effects on vehicle assets occur mainly among those in non‐metro areas and at the higher end of the asset distribution. Our findings imply that removing asset limits of assistance programs can lead to an increase in assets among the low‐income population.