Welfare impacts of Index Insurance in the presence of a poverty trap
This paper evaluates the welfare impacts of an index-based livestock insurance designed to compensate for satellite-based predicted livestock mortality in northern Kenya, where previous work has established the presence of poverty traps. We simulate household wealth dynamics based on rich panel and...
| Main Authors: | , , , |
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| Format: | Journal Article |
| Language: | Inglés |
| Published: |
Elsevier
2017
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/80426 |
| _version_ | 1855520150676045824 |
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| author | Chantarat, S. Mude, Andrew G. Barrett, Christopher B. Turvey, C.G. |
| author_browse | Barrett, Christopher B. Chantarat, S. Mude, Andrew G. Turvey, C.G. |
| author_facet | Chantarat, S. Mude, Andrew G. Barrett, Christopher B. Turvey, C.G. |
| author_sort | Chantarat, S. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This paper evaluates the welfare impacts of an index-based livestock insurance designed to compensate for satellite-based predicted livestock mortality in northern Kenya, where previous work has established the presence of poverty traps. We simulate household wealth dynamics based on rich panel and experimental data. The bifurcated livestock dynamics associated with the poverty trap gives rise to insurance valuation that is highly nonlinear in herd size. Estimated willingness to pay among vulnerable groups who most need insurance is, on average, lower than commercially viable rates. Targeted premium subsidization nonetheless appears to offer more cost-effective poverty reduction than need-based direct transfers. |
| format | Journal Article |
| id | CGSpace80426 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2017 |
| publishDateRange | 2017 |
| publishDateSort | 2017 |
| publisher | Elsevier |
| publisherStr | Elsevier |
| record_format | dspace |
| spelling | CGSpace804262024-05-01T08:16:11Z Welfare impacts of Index Insurance in the presence of a poverty trap Chantarat, S. Mude, Andrew G. Barrett, Christopher B. Turvey, C.G. livestock insurance development This paper evaluates the welfare impacts of an index-based livestock insurance designed to compensate for satellite-based predicted livestock mortality in northern Kenya, where previous work has established the presence of poverty traps. We simulate household wealth dynamics based on rich panel and experimental data. The bifurcated livestock dynamics associated with the poverty trap gives rise to insurance valuation that is highly nonlinear in herd size. Estimated willingness to pay among vulnerable groups who most need insurance is, on average, lower than commercially viable rates. Targeted premium subsidization nonetheless appears to offer more cost-effective poverty reduction than need-based direct transfers. 2017-06 2017-03-20T08:29:27Z 2017-03-20T08:29:27Z Journal Article https://hdl.handle.net/10568/80426 en Limited Access Elsevier Chantarat, S., Mude, A.G., Barrett, C.B. and Turvey, C.G. 2017. Welfare impacts of Index Insurance in the presence of a poverty trap. World Development 94:119–138. |
| spellingShingle | livestock insurance development Chantarat, S. Mude, Andrew G. Barrett, Christopher B. Turvey, C.G. Welfare impacts of Index Insurance in the presence of a poverty trap |
| title | Welfare impacts of Index Insurance in the presence of a poverty trap |
| title_full | Welfare impacts of Index Insurance in the presence of a poverty trap |
| title_fullStr | Welfare impacts of Index Insurance in the presence of a poverty trap |
| title_full_unstemmed | Welfare impacts of Index Insurance in the presence of a poverty trap |
| title_short | Welfare impacts of Index Insurance in the presence of a poverty trap |
| title_sort | welfare impacts of index insurance in the presence of a poverty trap |
| topic | livestock insurance development |
| url | https://hdl.handle.net/10568/80426 |
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