Abstract
The on-going debate regarding in-kind versus cash transfers to low-income people focuses on normal settings, devoid of the additional constraints imposed during a crisis. We analyze the effect of welfare regulations on SNAP and WIC recipients in light of the COVID-19 pandemic and related herd effects, leading to panic-buying and significant food shortages. Whereas individuals often prefer cash to in-kind transfers, SNAP and WIC in-kind transfers and additional rules constrain choices, which become even more constrained during a pandemic with herding. We use Google Trends data to show potential herding effects and the concern those effects might have caused for SNAP and WIC recipients. From an ethical perspective of minimizing additional harm, increasing consumption opportunities, and fostering agency, we suggest policymakers increase the substitutability between food items, streamline state waivers, encourage the electronic transfer of benefits, and integrate online delivery services.
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