Neighbor Helping Neighbor: Local Giving and the Geography of Charity
Does the decentralized, community funding structure of private charities create a gap between where high-capacity food pantries are located and where resource demand is highest? In this paper, I find that food pantry customers living in high-income, rural neighborhoods live within 20 miles of 40 more food pantries than customers in low-income neighborhoods. Customers in low-income neighborhoods also face more restrictions, such as limits on the number of visits allowed per month. Using observed customer behavior, I estimate the value of each food pantry visit based on characteristics such as flexible distribution times and availability of food. I then show that customers in high-income neighborhoods receive higher per-visit benefits than those in low-income neighborhoods. In a counterfactual simulation, I show that redistributing funding to improve pantries in low-income areas increases consumer surplus by 3.3% overall, with welfare gains of 4-5% for customers in the lowest-income neighborhoods, equivalent to nearly one additional meal per visit.