“…Social networks are important sources of financial support, and labor substitution is one of the main strategies to reduce the burden of income loss. Peters et al (2001), using the same data as we do in this paper, show that poorer Indian households are more likely to finance inpatient care through borrowing and sales of assets and, according to Bonu et al (2005), these strategies are also more common when hospitalized individuals are rural, male, head of the household, belong to a Scheduled Caste or Tribe and uneducated. While the small-scale qualitative studies suggest that coping strategies are used to shield household consumption from health shocks, the econometric panel data evidence indicates that informal mechanisms do not provide full insurance against this risk (Dercon and Krishnan, 2000;Gertler and Gruber, 2002;Lindelow and Wagstaff, 2005;De Weerdt and Dercon, 2006;Wagstaff, 2007).…”