TY - JOUR
T1 - Confronting the risk of asset loss
T2 - What role do livestock transfers in northern Kenya play?
AU - McPeak, John
N1 - Funding Information:
Financial support for this study was provided by an International Predissertation Fellowship from the Social Science Research Council and the American Council of Learned Societies with funds provided by the Ford Foundation, the Mellon Foundation, and the Graduate School of the University of Wisconsin-Madison. Work on the manuscript was conducted while the author was supported by the Pastoral Risk Management Project of the Global Livestock Collaborative Research Support Program, funded by the Office of Agriculture and Food Security, Global Bureau, USAID, under grants DAN-1328-G-00-0046-00 and PCE-G-98-00036-00. The opinions expressed do not necessarily reflect the views of the U.S. Agency for International Development. This study has greatly benefited from comments by Chris Barrett, Cheryl Doss, and two reviewers from this journal. All errors and omissions remain those of the author.
PY - 2006/12
Y1 - 2006/12
N2 - In many low-income, high-risk environments households participate in informal risk sharing institutions involving inter-household transfers. This study focuses on: asset transfers and asset risk; the influence of past behavior on access to transfers; and wealth-differentiated transfer behavior. Panel data on livestock transfers in northern Kenya are analyzed. Three explanations of livestock transfers are investigated: ex post insurance; ex ante precautionary savings; and redistribution. Findings indicate that livestock transfers are of limited effectiveness in addressing asset risk and avoiding poverty. The findings have implications for both research on risk sharing institutions and for the design of development policies in pastoral areas.
AB - In many low-income, high-risk environments households participate in informal risk sharing institutions involving inter-household transfers. This study focuses on: asset transfers and asset risk; the influence of past behavior on access to transfers; and wealth-differentiated transfer behavior. Panel data on livestock transfers in northern Kenya are analyzed. Three explanations of livestock transfers are investigated: ex post insurance; ex ante precautionary savings; and redistribution. Findings indicate that livestock transfers are of limited effectiveness in addressing asset risk and avoiding poverty. The findings have implications for both research on risk sharing institutions and for the design of development policies in pastoral areas.
KW - Asset risk
KW - Asset transfers
KW - Bivariate tobit
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U2 - 10.1016/j.jdeveco.2005.06.010
DO - 10.1016/j.jdeveco.2005.06.010
M3 - Article
AN - SCOPUS:33750024212
SN - 0304-3878
VL - 81
SP - 415
EP - 437
JO - Journal of Development Economics
JF - Journal of Development Economics
IS - 2
ER -