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Borrowing for hospitalization in India

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  • Pal, Rama
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Abstract

Borrowing to cover hospital costs is a major concern in developing countries, like India, as it may push households into despairs of poverty and indebtedness. The present study examines factors that lead to borrowing for hospitalization in case of Indian households. For this purpose, we use sample selection model. The analysis points out vulnerability of households from deprived sections of society and uneducated households, as they are more likely to borrow. Moreover, higher availability of public hospitals lowers probability of borrowing in rural areas. Thus, increasing coverage of public hospitals in rural areas might prove to be helpful.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 29404.

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Date of creation: 18 Aug 2010
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Handle: RePEc:pra:mprapa:29404

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Keywords: Hospital costs; Borrowing; Sample Selection Model;

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  1. Krishna, Anirudh, 2006. "Pathways out of and into poverty in 36 villages of Andhra Pradesh, India," World Development, Elsevier, vol. 34(2), pages 271-288, February.
  2. Krishna, Anirudh, 2004. "Escaping Poverty and Becoming Poor: Who Gains, Who Loses, and Why?," World Development, Elsevier, vol. 32(1), pages 121-136, January.
  3. Gabriela Flores & Jaya Krishnakumar & Owen O'Donnell & Eddy van Doorslaer, 2008. "Coping with health-care costs: implications for the measurement of catastrophic expenditures and poverty," Health Economics, John Wiley & Sons, Ltd., vol. 17(12), pages 1393-1412.
  4. Deepa Narayan & Patti Petesch, 2002. "Voices of the Poor : From Many Lands," World Bank Publications, The World Bank, number 14053, October.
  5. Sauerborn, R. & Adams, A. & Hien, M., 1996. "Household strategies to cope with the economic costs of illness," Social Science & Medicine, Elsevier, vol. 43(3), pages 291-301, August.
  6. Md. Azmal Kabir & Ataur Rahman & Sarah Salway & Jane Pryer, 2000. "Sickness among the urban poor: a barrier to livelihood security," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(5), pages 707-722.
  7. Salem Deenadayalan Vaishnavi & Umakant Dash, 2009. "Catastrophic payments for health care among households in urban Tamil Nadu, India," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(2), pages 169-184.
  8. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  9. Russell, Steven & Gilson, Lucy, 2006. "Are health services protecting the livelihoods of the urban poor in Sri Lanka? Findings from two low-income areas of Colombo," Social Science & Medicine, Elsevier, vol. 63(7), pages 1732-1744, October.
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