Impact of index insurance on downside income risk: Evidence from northern Kenya

We assessed the impact of index-based livestock insurance (IBLI) on household income and its higher-order moments (i.e., variance and skewness). The study uses four waves of panel survey data from northern Kenya and applies a two stage least squares (2SLS) instrumental variables regression to estima...

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Autores principales: Shikuku, Kelvin Mashisia, Ochenje, Ibrahim
Formato: Journal Article
Lenguaje:Inglés
Publicado: AAEA 2025
Materias:
Acceso en línea:https://hdl.handle.net/10568/169692
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author Shikuku, Kelvin Mashisia
Ochenje, Ibrahim
author_browse Ochenje, Ibrahim
Shikuku, Kelvin Mashisia
author_facet Shikuku, Kelvin Mashisia
Ochenje, Ibrahim
author_sort Shikuku, Kelvin Mashisia
collection Repository of Agricultural Research Outputs (CGSpace)
description We assessed the impact of index-based livestock insurance (IBLI) on household income and its higher-order moments (i.e., variance and skewness). The study uses four waves of panel survey data from northern Kenya and applies a two stage least squares (2SLS) instrumental variables regression to estimate the causal impacts. We found that uptake of IBLI increased household income and reduced pastoralists' exposure to downside risk. Our results imply that policies and investments promoting the scaling of index insurance will be effective for climate risk management and welfare improvement in Sub-Saharan Africa by increasing income and reducing exposure to downside risk.
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spelling CGSpace1696922025-11-12T04:29:21Z Impact of index insurance on downside income risk: Evidence from northern Kenya Shikuku, Kelvin Mashisia Ochenje, Ibrahim adaptation agricultural insurance climate shocks risk management households pastoralists We assessed the impact of index-based livestock insurance (IBLI) on household income and its higher-order moments (i.e., variance and skewness). The study uses four waves of panel survey data from northern Kenya and applies a two stage least squares (2SLS) instrumental variables regression to estimate the causal impacts. We found that uptake of IBLI increased household income and reduced pastoralists' exposure to downside risk. Our results imply that policies and investments promoting the scaling of index insurance will be effective for climate risk management and welfare improvement in Sub-Saharan Africa by increasing income and reducing exposure to downside risk. 2025-05 2025-01-22T21:45:00Z 2025-01-22T21:45:00Z Journal Article https://hdl.handle.net/10568/169692 en Open Access application/pdf AAEA Shikuku, Kelvin., Ochenje, Ibrahim. 2025. Impact of index insurance on downside income risk: Evidence from northern Kenya. Applied Economic Perspectives and Policy.
spellingShingle adaptation
agricultural insurance
climate shocks
risk management
households
pastoralists
Shikuku, Kelvin Mashisia
Ochenje, Ibrahim
Impact of index insurance on downside income risk: Evidence from northern Kenya
title Impact of index insurance on downside income risk: Evidence from northern Kenya
title_full Impact of index insurance on downside income risk: Evidence from northern Kenya
title_fullStr Impact of index insurance on downside income risk: Evidence from northern Kenya
title_full_unstemmed Impact of index insurance on downside income risk: Evidence from northern Kenya
title_short Impact of index insurance on downside income risk: Evidence from northern Kenya
title_sort impact of index insurance on downside income risk evidence from northern kenya
topic adaptation
agricultural insurance
climate shocks
risk management
households
pastoralists
url https://hdl.handle.net/10568/169692
work_keys_str_mv AT shikukukelvinmashisia impactofindexinsuranceondownsideincomeriskevidencefromnorthernkenya
AT ochenjeibrahim impactofindexinsuranceondownsideincomeriskevidencefromnorthernkenya