Dry beans prices and income distribution in Rwanda: a non-parametric analysis

Type Journal Article - World Journal of Agricultural Economics and Rural Development
Title Dry beans prices and income distribution in Rwanda: a non-parametric analysis
Volume 1
Issue 3
Publication (Day/Month/Year) 2015
Page numbers 1-11
URL http://www.wjaerd.com/WJAERD_Vol. 1, No. 3, August 2015/DRY BEANS.pdf
In the post-genocide period, the government of Rwanda has exercised a range of policy instruments that have influenced the prices of agricultural goods. Using household survey of 2010-2011, higher dry beans prices can be expected to provide direct benefits to households at all levels of living. The objective of this paper is to study the effect of a price change on household welfare. Household survey data is used to carry out a comprehensive analysis of the impact of price changes on household welfare using the first-order approximation. The impacts are estimated across the income distribution for the total population and subsets of the population: rural versus urban households, and female- versus male-headed households. Variables of interest are the log per capita expenditure (as a measure of household well-being), the share of dry beans in total expenditure, the share of income generated by dry beans sales, and the net income generated by dry beans (sales minus consumption of dry beans). Using non-parametric regressions, the relative vulnerability of various household groups are mapped across per capita expenditure according to the gender of the household heads and whether the household is urban or rural. The analysis shows that, with a general rise in the price of dry beans, household-groups that will be severely affected are those that are poor, rural and male headed. The findings are useful in helping the government identify vulnerable households in the wake of price increases of staple food crops such as dry beans.

Related studies