Price Consciousness at the Peak of “Impatience”

Abstract

Past studies consistently document that consumption among low-income households spikes after income receipt and then subsequently declines. Using two approaches to analyzing linked survey and administrative data on food purchases, we find that SNAP recipients are most price-conscious and engage in their most successful price-saving efforts soon after benefit receipt. This contrasts with prior literature that posits recipients mistakenly feel “flush” with money after benefit receipt and injects forethought and savviness among SNAP recipients into the prevailing narrative that they lack self-control and capability. The frequency of benefit receipt may act as a savings commitment device that funds price-saving efforts.