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1、Food Stamp Program Participation and Food Insecurity: An Instrumental Variables Approach,Steven T. Yen The University of Tennessee Margaret Andrews Economic Research Service, USDA Zhuo Chen The Centers for Disease Control David B. Eastwood The University of Tennessee,Overview,Food Stamp Program (FSP
2、) is a major USDA food program. Food insecurity (FI) is an important measure of welfare. We investigate relationship between FSP participation (binary) and FI (censored); effects of policy/socio-demographic variables on FSP participation and FI.,2,Overview ,Motivated by mixed results from previous s
3、tudies: insignificant/positive effects of FSP on FI; insignificant/negative effect of FI on FSP; inefficient 2-step estimates Estimation by maximum-likelihood method (more efficient),Overview ,Major findings: FSP participation decreases FI Also playing important roles in FSP & FI: State-level policy
4、 variables e.g., EBT, short re-certification Socio-demographic variables e.g., marital status Being married reduces participation in FSP Being married reduces FI,Introduction: USDA Food Programs,USDA implements 16 Food Assistance and Nutrition Programs to provide low-income families and children wit
5、h access to a healthy diet. The 16 programs were funded at $42.9 billion in FY 2004. 1 in 5 Americans participated in one/more programs at some point each year.,Introduction: Food Insecurity in America,Most recent USDA food security survey indicates that 3.5% of U.S. households (3.8 million people)
6、were food insecure with hunger; 7.6% (8.3 million people) were food insecure without hunger. NFSPS sample (1996-97, “low-income”): 26.6% were food insecure during past 30 days.,Empirical Literature,Earlier studies of food insecurity addressed “food insufficiency”. Gunderson and Oliveira (2001) inves
7、tigated food stamp participation and food insufficiency, using 19911992 SIPP panels; used two-step estimator for simultaneous-equation probit (Mallar, 1977). Findings: Mutual effects of FSP and FI are insignificant. FSP participants had same probability of food insufficiency as non-participants.,Emp
8、irical Literature ,More recent studies used data for FI. Huffman and Jensen (2003) use the SPD data; estimated simultaneous-equation probit, also using Mallars (1977) procedure: FS participation (0-1); Labor-force participation (0-1); food insecurity (0-1). Findings FI decreases FSP participation; F
9、SP participation does not affect FI,Empirical Literature ,Jensen (2002) estimated the FSP participation (0-1) and food insecurity (0,1,2,3), in a 2-equation SUR system Finding: FI and FSP “are affected in the same direction by random shocks or unmeasured effects.” (drawing on significant error corre
10、lation),Empirical Literature ,Based on the 1995 and 1999 Food Security Supplements to the CPS, Nord (2001) found: households receiving food stamps registered almost no change in the measured prevalence of FI or hunger during the period. Only one study has shown a clear positive association between F
11、I and the use of public assistance. Borjas (2004) shows that a 10% cut in the fraction of the population that receives public assistance increased the percent of FI households by about 5%.,Empirical Literature ,Kabbani and Yazbeck (2004) pooled multiple years of data from the CPS and, using a two-st
12、age estimation procedure to control for the endogeneity of the program participation decision, Results suggest that participation in the FSP appears to moderate the observed differences for households with children aged 5 to 18, but not significantly.,Empirical Literature ,Kabbani and Kmeid (2005) L
13、ogit analysis Sample: CPS; FSP-eligible households that experienced hunger during the year Dependent variable (0-1): experienced hunger during the last 30 days Results: FSP participation (0-1; exogenous) does not affect the odd of hunger FSP amount (exogenous) significantly reduces the odd of hunger
14、,Empirical Literature ,Apparent inconsistency among previous results suggests that a more careful investigation between FSP participation & FI is needed.,This Study,Investigates relationship between FSP and FI; effects of socio-demographic variables on FSP and FI, using an instrumental variables app
15、roach.,This Study ,NFSPS 1996-97 data offer a unique opportunity for such a pursuit: include the 18 items of the food security module (used for annual monitoring of FI); include follow-up questions that allow examination of FI status in the past 30 days; variations in state-level variables: EBT adop
16、tion; re-certification periods provide better instruments than those used in previous studies (except Kabbani and Wilde, 2003; Kabbani and Yazbeck, 2004, 2005),This Study ,Methodology: accommodates endogeneity of FSP in the FI equation Results FSP improves () FI.,Econometric Models ,Econometric Model ,Data,National Food Stamp Program Survey (NFSPS), 199697. Low-income sample (below 150% of poverty threshold). Endogenous variables: FSP participation (0-1) FI constructed from
