Borrowing for hospitalization in India
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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