Publications
Publications
- 2017
- HBS Working Paper Series
Salience through Information Technology: The Effect of Balance Availability on the Smoothing of SNAP Benefits
By: Andrew Hillis
Abstract
Recipients of the Supplemental Nutrition Assistance Program (SNAP) run out of most benefits before halfway through a benefit deposit cycle. I study the introduction of a mobile software application, Fresh EBT, that enables beneficiaries to check their available balance and previous spending history conveniently. Using an event study, I show that the introduction of the application on average has small but statistically significant impacts on the ability of recipients to extend the time frame over which they have benefits available within a cycle. On a very general measure of spending over time, this impact corresponds to a 4% increase. Average days spent with less than $5 within a deposit cycle decreases from eleven to just over ten. While the application assists beneficiaries in financial management, they continue with minimal benefits for several days within a cycle. These effects are higher for recipients who are new to SNAP, who are highest in the distribution of SNAP benefits, and who have the largest tendency pre-adoption to spend down quickly. The results are consistent with the impact of salience on consumer choice and offer evidence that such software tools may help support beneficiaries in financial management.
Keywords
Citation
Hillis, Andrew. "Salience through Information Technology: The Effect of Balance Availability on the Smoothing of SNAP Benefits." Harvard Business School Working Paper, No. 18-038, October 2017.