Poverty traps and Index-Based risk transfer products
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Barnett, B.J.; Barrett, C.B.; Skees, J.R. 2008. Poverty traps and index-based risk transfer products. World Development 36(10): 1766-1785.
Permanent link to this item: http://hdl.handle.net/10568/927
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.