Distribution of Budget Shares for Food: An Application of Quantile Regression to Food Security 1

Abstract

This study examines, using quantile regression, the linkage between food security and efforts to enhance smallholder coffee producer incomes in Rwanda. Even though in Rwanda smallholder coffee producer incomes have increased, inhabitants these areas still experience stunting and wasting. This study examines whether the distribution of the income elasticity for food is the same for coffee and noncoffee growing provinces. We find that that the share of expenditures on food is statistically different in coffee growing and noncoffee growing provinces. Thus, the increase in expenditure on food is smaller for coffee growing provinces than noncoffee growing provinces.

Keywords

• income elasticity
• subsistence
• marketing channels