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Rural versus Urban Areas and the Supplemental Nutrition Assistance Program

  • Senal A. Weerasooriya and Jeffrey J. Reimer

Abstract

This study quantifies how spending changes induced by the Supplemental Nutrition Assistance Program (SNAP) affects production and employment in rural and urban areas. A general equilibrium simulation model with an estimated demand system is first used to project how SNAP affects spending on different goods and services. These impacts are then linked to the expansion and contraction of different economic sectors that differ in importance across rural and urban Oregon. In urban areas, a number of service sectors linked to higher-income households shrink slightly in response to SNAP, while food-related sectors expand; the net effect on jobs is slightly negative. Production changes in rural areas are generally smaller, while having a slightly positive net effect on jobs. Overall, SNAP makes a positive difference for low- or no-income households without strong effects elsewhere in the economy.

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Copyright

This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.

Corresponding author

Correspondence: Jeff Reimer, Department of Applied Economics, Oregon State University, 213 Ballard Extension Hall, Corvallis, OR, 97331. Email: jeff.reimer@oregonstate.edu Phone: 541-737-1415

References

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Keywords

Rural versus Urban Areas and the Supplemental Nutrition Assistance Program

  • Senal A. Weerasooriya and Jeffrey J. Reimer

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