Issuance and Incidence: SNAP Benefit Cycles and Grocery Prices

Many safety net programs issue benefits as monthly lump-sum payments. We investigate how the timing of Supplemental Nutrition Assistance Program (SNAP) benefit issuance affects food purchases and incidence transfer. Using scanner data from a large sample grocery stores state time variation in SNAP schedules, we document large, SNAP-induced intramonth cycles expenditures. However, find that retailers do not adjust prices based on these predictable patterns demand. Our results therefore suggest reforming schedules may reduce costs demand surges but are unlikely to affect benefits. (JEL D12, H75, I18, I38, L81)