Working Paper: NBER ID: w24750
Authors: Charles J. Courtemanche; Art Carden; Murugi Ndirangu; Xilin Zhou
Abstract: This paper examines the effect of Walmart Supercenters, which lower food prices and expand food availability, on household and child food insecurity. Our food insecurity-related outcomes come from the 2001-2012 waves of the December Current Population Study Food Security Supplement. Using narrow geographic identifiers available in the restricted version of these data, we compute the distance between each household’s census tract of residence and the nearest Walmart Supercenter. We estimate instrumental variables models that leverage the predictable geographic expansion patterns of Walmart Supercenters outward from Walmart’s corporate headquarters. Results suggest that closer proximity to a Walmart Supercenter improves the food security of households and children, as measured by number of affirmative responses to a food insecurity questionnaire and an indicator for food insecurity. The effects are largest among low-income households and children, but are also sizeable for middle-income children.
Keywords: Walmart; food security; food prices; instrumental variables
JEL Codes: I12; I14; Q18
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Proximity to Walmart supercenter (L81) | Food security (Q18) |
| Distance from Walmart supercenter (L81) | Food security (Q18) |
| Distance from Walmart supercenter (L81) | Probability of being food insecure (I32) |
| Walmart supercenter entry (L81) | Food security (Q18) |
| Distance to Walmart (L81) | Food security measures (Q18) |