RadioRaheem84
28th June 2011, 20:02
SNAP benefits are a fiscal stimulus whose effects on the economy can be measured with the FANIOM model as multiplier effects. For SNAP benefits, the FANIOM GDP Type III multiplier of 1.79 is an appropriate update for the 1.84 multiplier reported in Hanson and Golan (2002), which is often cited
as $9.20 (or $9) of economic activity generated from $5 of SNAP benefits.Though the two multipliers are different—one is a type III multiplier for
GDP (1.79) and the other is a type I multiplier for production (1.84) —they each express an overall impact on economic activity
http://www.ers.usda.gov/Publications/ERR103/ERR103.pdf
Study by the US Department of Agriculture shows Food Stamps Program, SNAP, actually stimulates the economy as one dollar used in Food Stamps creates 1.84 in the economy.
This is probably all duh stuff to you guys, but I was quite impressed with how a federal program can stimulate the economy this much and shows just how an economy can be stimulated when funds are geared to meet society's needs.
as $9.20 (or $9) of economic activity generated from $5 of SNAP benefits.Though the two multipliers are different—one is a type III multiplier for
GDP (1.79) and the other is a type I multiplier for production (1.84) —they each express an overall impact on economic activity
http://www.ers.usda.gov/Publications/ERR103/ERR103.pdf
Study by the US Department of Agriculture shows Food Stamps Program, SNAP, actually stimulates the economy as one dollar used in Food Stamps creates 1.84 in the economy.
This is probably all duh stuff to you guys, but I was quite impressed with how a federal program can stimulate the economy this much and shows just how an economy can be stimulated when funds are geared to meet society's needs.