The Food Assistance National Input-Output Multiplier Model and Stimulus Effects of SNAP

USDA just released a report “The Food Assistance National Input-Output Multiplier (FANIOM) Model and Stimulus Effects of SNAP“. USDA’s Economic Research Service “uses the FANIOM model to represent and measure linkages between USDA’s domestic food assistance programs, agriculture, and the U.S. economy.

From the executive summary:

The FANIOM analysis of SNAP benefits as a fiscal stimulus finds that:

  • An increase of $1 billion in SNAP expenditures is estimated to increase economic activity (GDP) by $1.79 billion. In other words, every $5 in new SNAP benefits generates as much as $9 of economic activity. This multiplier estimate replaces a similar but older estimate of $1.84 billion reported in Hanson and Golan (2002).
  • The jobs impact estimates from FANIOM range from 8,900 to 17,900 full-time equivalent jobs plus self-employed for a $1-billion increase in SNAP benefits. The preferred jobs impact estimates are the 8,900 full-time equivalent jobs plus self-employed or the 9,800 full-time and part-time jobs plus self-employed from $1 billion of SNAP benefits (type I multiplier).
  • Imports reduce the impact of the multiplier effects on the domestic economy by about 12 percent.

Source: Kenneth Hanson, “The Food Assistance National Input-Output Multiplier (FANIOM) Model and Stimulus Effects of SNAP”, USDA Economic Research Report No. (ERR-103) 50 pp, October 2010, viewed 10-4-10 http://www.ers.usda.gov/Publications/ERR103/

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