Does Participation in the Food Stamp Program Increase the Prevalence of Obesity and Health Care Spending?

We use panel data techniques and information on state‐level Food Stamp Program characteristics to obtain unbiased estimates of the impact of Food Stamp Program participation on weight status and health care spending among nonelderly adults. Our results suggest that program participation by women leads to a 5.9% (p = 0.07) increase in their likelihood of overweight and obesity, which is smaller than previous estimates, and to higher medical expenditures. The direct effect of program participation on medical spending through higher discretionary income is significantly larger than the indirect effect through changes in weight status.