Household versus Community Effects: Who Really Pays More for Food?
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One strand of literature shows a household's cost of food to vary with the household's own income and demographic characteristics. For example, low-income households may tend to purchase less costly bundles of food. However, a separate strand of literature also shows food prices to vary spatially with the characteristics of communities, such as real estate prices. In this study, a model is developed that unites these two strands. Simulations further illustrate the effect that a community's characteristics can have on a household's food budget, if the household lives in each of ten cities in the United States.