A novel approach to assessing food insecurity for small geographic areas using household living budgets

Abstract

The USDA Economic Research Service has monitored food insecurity at national and state levels since 1995 using the Current Population Survey Food Security Supplement. But if a food insecurity measure is to inform action and target interventions, it must be constructed for smaller geographic levels that consider geographic price differences. This article constructs a novel measure of food insecurity using an alternative approach based on financial needs of households, known as the household living budget (HLB). The HLB is defined as the income required to satisfy a household's essential needs, enabling it to maintain a modest yet sufficient standard of living while covering federal and state income taxes. The HLB is constructed at the census tract level and incorporates three key determinants of food insecurity: household size and composition, household income, and food costs. We demonstrate how the HLB along with publicly available data can be used to construct a food insecurity measure using a residual income approach to assess if households are able to afford paying for food expenditures and assess the qualification thresholds of the Supplemental Nutrition Assistance Program (SNAP). Food insecurity estimates are obtained for households in Washington, D.C. and benchmarked to regional results provided by a survey sponsored by the Capital Area Foodbank.