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Short-Run Impacts of SNAP Restriction Waivers on Beverage Purchases
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Ten states implemented Supplemental Nutrition Assistance Program (SNAP) Food Restriction Waivers to restrict purchases of sugary beverages with SNAP funds for the first time in program history in 2026. We estimate the short-run impact of these waivers using a new panel dataset of household beverage purchases. For the average SNAP household, these waivers decrease soda purchases by 13 percent with persistent effects for up to two months after implementation. For inframarginal SNAP households, these waivers decrease soda purchases by 18.5 percent. These findings are inconsistent with the predictions of traditional demand theory and suggest that behavioral models incorporating mental accounting and labeling better characterize consumer responses to SNAP purchase restrictions.<br><br>Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at <a href="http://www.nber.org/papers/w35613" TARGET="_blank">www.nber.org</a>.<br>
Title: Short-Run Impacts of SNAP Restriction Waivers on Beverage Purchases
Description:
Ten states implemented Supplemental Nutrition Assistance Program (SNAP) Food Restriction Waivers to restrict purchases of sugary beverages with SNAP funds for the first time in program history in 2026.
We estimate the short-run impact of these waivers using a new panel dataset of household beverage purchases.
For the average SNAP household, these waivers decrease soda purchases by 13 percent with persistent effects for up to two months after implementation.
For inframarginal SNAP households, these waivers decrease soda purchases by 18.
5 percent.
These findings are inconsistent with the predictions of traditional demand theory and suggest that behavioral models incorporating mental accounting and labeling better characterize consumer responses to SNAP purchase restrictions.
<br><br>Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at <a href="http://www.
nber.
org/papers/w35613" TARGET="_blank">www.
nber.
org</a>.
<br>.
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