The views expressed here are those of the author and cannot be attributed to the Economic Research Service or the U.S. Depart

How ERS-FED uses the CE Di

presented by Kenneth Hanson, 

USDA Economic Research Service USDA, Economic Research Service

www.ers.usda.gov

at the

BLS CE Data Users’ Forum

June 21-22, 2010 
Disclaimer

• The views expressed here are those 

The views expressed here are those 

author and cannot be attributed to th

Economic Research Service or the U Economic Research Service or the U

Department of Agriculture.
Food Spending in American househ

Food Spending in American househ

• Tabulations of CE Diary data 1980 thru 2

Tabulations of CE Diary data 1980 thru 2

– Several publications over the years with the latest by B

Stewart, EIB-23, 2007

– Food spending by a variety of CU (household) charact

– Special reports that are variations on a theme: low-inc

cohorts, food away from home (fast-food and full-servi

• Issue: 2-weeks of reported expenditures

– treated as separate CUs, or– averaged into one week of expenditures by that CU
Household size and food expenditu

E i fS l Economies o

f

Scale 

• K d err an

d P t ki e

terki

n (1975) d 1965 N ti id H h 

(1975) use

d 1965

N

ationwide 

House

h

o

Consumption Survey to find that larger households spend food but less per person 

• Results from the 1975 study used to set SNAP benefits by 

household size relative to 4-person household (TFP)

• Blisard and Stewart (2007) used tabulations of 2003-4 CE 
Compare food expenditure for 1-person househ

i ith FSP i b fit 2005 income with FSP maximum 

benefit, 2005

-20

Table. Estimates of Economies of scale on cost of food at home by household size

Economies of scale Economies of scale

Kerr

& Peterkin (1975) Blisard

& Stewart (2007

hh‐1 1 20 . 1 36 .hh‐2 1.10 1.37hh‐3 1.05 1.09hh‐4 1.00 1.00

S ERS l l ti f BLS C E dit S

hh‐5 0.95 0.92hh‐6 0.95 0.71hh‐7+ 0.90 0.71

Source: ERS calculations from BLS, Consumer 

Expenditure 

Survey.
Compare food expenditure by 4-person househo

i ith FSP i b fit 2005 income with FSP maximum 

benefit, 2005

-20

All 

Less 

than 

$10,000

$10,000 

to 

$15,000

$15,000 

to 

$20,000

$20,000 

to 

$30,000

$30,000 

to 

$40,000

$40,000 

to 

$50,000

Food at home 8,583 5,803 5,305 4,887 6,212 6,278 6,242 FSP max ben family of 4 6,030FSP gross income family of 4 24,840

Source: ERS calculations from BLS, Consumer Expenditure Survey.
Compare food expenditure for 1-person househ

i ith FSP i b fit 2005 income with FSP maximum 

benefit, 2005

-20

less $5,000 $10,000 $15,000 $20,000 $30,000 $40,000 

All 

less

than 

$5,000

$5,000

to 

$10,000

$10,000

to 

$15,000

$15,000

to 

$20,000

$20,000

to 

$30,000

$30,000

to 

$40,000

$40,000

to 

$50,000

Food at home 3,162 2,447 2,012 2,275 2,592 2,775 3,342 3,769 FSP max ben family of 1 1,806FSP gross income family 1 12,276

Source: ERS calculations from BLS, Consumer Expenditure Survey.
CE food budget relative to cost o

CE food budget relative to cost o

Ratio of 

total food exp total food exp. 

to TFP cost 

All Households 1.61 All Low-I H h ld Income 

House

h

old

s 1 25 . 

Low-income female headed

households with children 1.14 

Low-income married couples

with children 1.05 

Low-income elderly couples 1.29 

Source: Blisard and Stewart (ERR-20, august 2006)
Average weighted annual household food expend

Nielsen homescan homescan and CE, 2002 and CE, 2002

-05

Leibtag, Rev. Ag. Econ Fall 2009

Homescan CE Difference

Mean Mean HS - CE

Meats and fish $421 $790 -$369Eggs $19 $37 -$18Fresh Milk Fresh Milk $101 $140 -$39Other Dairy Produts $221 $221 $0

Fresh Fruits and Veges $186 $363 -$177

Fats and Oils $47 $87 -$40Nonalcohol Beverages $198 $286 -$87

Cereal & Bakery Products $374 $460 -$85

Sugar and Sweets $116 $125 -$8

Processed Fruits & Veges $198 $199 $0

Misc Foods $535 $537 -$1
CPS food security supplement compare to BLS CE dia

5800

CPS food security supplement compare to BLS CE

-dia

mean annual expenditures for food by households i

middle quintile of household income. Nord, EIB-61 20

56005700530054005500510052005000

2000 2001 2002 2003 2004 2005 2006 2007 

Middle quintile, CPS-FSS Middle quintile, CES
400

year to year change in average annual food at home consumption, cur

dollars and real 2008 dollars (CPI food-at-home deflator)

0

100200300

400

dollars

-400-300-200-100

3rd 20%, real 2008 $ 3rd 20%, current $
Econometric Estimates of demand fun

Econometric Estimates of demand fun

• Demand system for households 

– LES se

g y mented b

y CU structure and income 

– Engel model of demand (income elasticity) fo

food items by low- and mid-income househol

(Stewart and Blisard ERR (Stewart and Blisard, ERR

-54 2008) 54, 2008)

• Price and income elasticity Price and income elasticity• Marginal versus average budget shares
BLS, CE average food expenditure sh

BLS, CE average food expenditure sh

Total expenditure Income afte

all-cons low-20% all-cons 

1984 15.0 16.1 15.9 1996 13.8 16.8 14.1 2002 13 2. 16 7. 12 0. 2006 12.6 15.6 10.5 Source: ERS calculations from BLS Consumer Expenditure Survey Source: ERS calculations from BLS, Consumer Expenditure Survey.
BLS, CE marginal food expenditure sh

2006

$5,000 

to 

$10,000

$10,000 

to 

$15,000

$15,000 

to 

$20,000

$20,000 

to 

$30,000

$30,000 

to 

$40,000

$40,000 

to 

$50,000

$$

ch food to ch inc before tax -2.50 5.26 10.83 6.78 5.65 6.45 ch food to ch inc after tax -2.45 5.18 11.13 6.89 6.03 6.64 ch food to ch avg exp 4.78 6.19 13.96 10.93 9.12 14.36 

Source: ERS calculations from BLS, Consumer Expenditure Survey.
USDA National Household Food Acquisitio

P h S (FOODAPS) Purc

hase 

Survey (FOODAPS)

• Food purchased for consumption at home 

Food purchased for consumption at home 

away from home, and

• Foods ac

q g uired throu

gh food and nutritio

assistance programs

• Quantity, Prices and Ex

penditures are inc

as well as nutritional value of foods

• Sample: 3,500 low-income and 1,500 hig

income households 

• Five year horizon
C ood e pe d tu es ssues a d quest 

E food expenditures: issues and quest

• Expenditures = Price * quantity

– Could price data be included as a CE data file

• Low-income CUs spend more than income income CUs spend more than income

– Borrowing & credit-card debt, inter-household transfer – Treatment of students and negative proprietor income

• Linking the diary with the interview survey

– Interview food exp g enditures are greater

• Under-reporting of SNAP recipients & benefit
C ood e pe d tu es ssues a d quest 

E food expenditures: issues and quest

• Food at home commodity detail 

– White bread and bread other than white

– Whole grains, for bread, rice, pasta, etc.

– Potatoes, lettuce, tomatoes, and other fresh vegetable– More detail, e.g. dark-greens, deep-yellow

• Food away from home: more detail Food away from home: more detail

– What more can we get, e.g. types of foods?– School lunch: vending machines/full-service/catered a

• Report median expenditures • Apply standard errors (e g anthology article) Apply standard errors (e.g. anthology article)