Food Stamp Program Participation and Food Insecurity: An Instrumental Variables Approach

The relationship between Food Stamp Program (FSP) participation and household food insecurity (FI) is investigated using data from the 1996-1997 National Food Stamp Program Survey. Endogeneity of FSP participation is accommodated with an instrumental variables approach. In contrast to other findings reported in the literature, results suggest participation in the FSP reduces the severity of FI. Sociodemographic variables play important roles in FSP participation and FI. Underreporting of FSP participation and limited observations of food-insecure households in previous studies may have also been factors.