The roles of food prices and food access in determining food purchases of low-income households

A growing literature suggests that limited access to full-service grocery stores may be linked to poor diets, obesity, and other diet-related diseases. Food prices are likely to be as much of a factor in low-income consumers’ food purchase decisions as food store access is, but few studies consider the roles of prices and food access simultaneously. We incorporate supermarket access into a utility-theoretic censored demand system for 13 food groups among households that receive the Supplemental Nutrition Assistance Program (SNAP) benefits in the U.S. The demand system is estimated with a Bayesian procedure which otherwise would have been cumbersome with the classical approach. Results suggest that prices are significant determinants of food purchases, but supermarket access has limited influence. Improving food choices, diet, and health may require addressing both accessibility and affordability.