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Poverty Traps and Index-Based Risk Transfer Products

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  • Barnett, Barry J.
  • Barrett, Christopher B.
  • Skees, Jerry R.

Abstract

Summary A growing literature suggests that in low-income countries, households with few assets can be trapped in chronic poverty. This article reviews relevant threads of the poverty traps literature to motivate a description of the opportunities presented by innovative index-based risk transfer products. These products can be used to address some insurance and credit market failures that contribute to the persistence of poverty among households in low-income countries. Applications are considered at the micro, meso, and macro levels.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 36 (2008)
Issue (Month): 10 (October)
Pages: 1766-1785

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Handle: RePEc:eee:wdevel:v:36:y:2008:i:10:p:1766-1785

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: index-based risk transfer products insurance poverty traps risk management;

References

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