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Limited Food Access as an Equilibrium Outcome: An Empirical Analysis

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  • Bonanno, Alessandro
  • Chenarides, Lauren
  • Goetz, Stephan J.

Abstract

Lack of access to nutritious and affordable food has become an important public policy issue in the U.S.: various interest groups are seeking to reverse a trend whereby certain areas lack larger, full-service grocery stores that provide “higher” quality foods. Based on game-theoretic findings suggesting that lack of food access can be an equilibrium outcome, we specify a model relating access to higher quality food stores to a vector of supply and demand factors, using seven years of county-level data for the contiguous U.S., and a constrained generalized ordered logit estimator. Our results suggest that demand side factors, especially market size (total income and SNAP funds) play an important role in determining food access, and that large food stores avoid areas with higher poverty. Some cost determinants, such as the ratio of building costs to the total site cost, home price index (for counties with higher poverty rates than the average) and ease of recruiting labor, affect the probability of observing areas with no access. A more favorable business tax regime has no impact on access, while better transportation infrastructure reduces rather than improves food access. Our results shed new light on the determinants of food access in addition to highlighting what policy can and cannot accomplish to improve food access.

Suggested Citation

  • Bonanno, Alessandro & Chenarides, Lauren & Goetz, Stephan J., 2012. "Limited Food Access as an Equilibrium Outcome: An Empirical Analysis," 2012 AAEA/EAAE Food Environment Symposium 123196, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaeafe:123196
    DOI: 10.22004/ag.econ.123196
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    Cited by:

    1. Lauren Chenarides & Edward C. Jaenicke, 2019. "Documenting the Link Between Poor Food Access and Less Healthy Product Assortment Across the U.S," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(3), pages 434-474, September.
    2. Chenarides, Lauren & Jaenicke, Edward C., 2016. "Store Choice and Consumer Behavior in Food Deserts: An Empirical Application of the Distance Metric Method," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235925, Agricultural and Applied Economics Association.
    3. Steele, Marie E. & Weatherspoon, Dave D., 2017. "A Theoretical Approach to Supermarket Chain Investment in Urban Food Deserts," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258202, Agricultural and Applied Economics Association.

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