Contractor and Cooperator Reports No. (CCR-24) 80 pp

October 2006

The MID-SIPP Model: A Simulation Approach for Projecting Impacts of Changes in the Food Stamp Program

This report introduces the Monthly Income Dynamics, Survey of Income and Program Participation (MID-SIPP) model, developed to simulate the effects of changes in rules on eligibility, participation, and costs in the Food Stamp Program (FSP). Drawing on data from the Survey of Income and Program Participation (SIPP), the simula-tion framework of MID-SIPP expands considerably the range of FSP policy options that can be analyzed with cur-rently available FSP microsimulation models. The MID-SIPP model also tracks administrative activity associated with certification and reporting requirements. The simulated total of FSP benefits paid under a version of quarterly reporting is $17.1 billion, $1.0 billion more than the simulated total under monthly reporting. Quarterly reporting results in an estimated 37-percent reduction in the total number of administrative reports.

This study was conducted by The SPHERE Institute under a cooperative research contract with USDA’s Economic Research Service (ERS) Food and Nutrition Assistance Research Program (FANRP): contract number 43-3AEM-9-80104 (ERS project representative: J. William Levedahl). The views expressed are those of the authors and not necessarily those of ERS or USDA.

Keywords: Food Stamp Program, income volatility, income dynamics, food assistance,program integrity, recertification, Food Assistance and Nutrition Research Program, FANRP

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