Measuring the Impact of Regional Price Disparities on Food Insecurity Risk

Abstract

This thesis analyzes the risk of food insecurity among active-duty servicemembers and evaluates current policies intended to reduce the high rate of food insecurity reported among servicemembers and their families. The newly implemented Basic Needs Allowance (BNA) provides economic assistance to active-duty families with household income below 150 percent of the Federal Poverty Level (FPL), but I find that less than one percent of the Department of Defense population is eligible for assistance rendering the allowance ineffective in reducing the rate of food insecurity among servicemembers. Among comparable civilian households, there is no abrupt decline in food insecurity rates at 150 percent of the FPL. Furthermore, the likelihood of experiencing food insecurity is 16 percentage points higher in high-cost areas compared to low-cost areas, indicating a relationship between purchasing power and the rate of food insecurity. Based on this analysis, servicemembers with income below 200 percent of the FPL are sensitive to regional price differences, putting junior servicemembers in high-cost areas at an increased risk for food insecurity.