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  1. Library Resource
    Manuals & Guidelines
    November, 2009
    Kenya, Eastern Africa

    This paper evaluates the effectiveness of a new index-based livestock insurance (IBLI)

    product designed to compensate for area average predicted livestock mortality loss in

    northern Kenya, where previous work has established the presence of poverty traps. We

    simulate household-specific wealth dynamics based on a model parameterized using rich

    panel and experimental data from the region. The simulations allow us to investigate

    patterns of willingness to pay for asset index insurance that is imperfectly correlated with

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