THE EFFECT OF CADAVERIC KIDNEY DONATIONS ON LIVING KIDNEY DONATIONS: AN INSTRUMENTAL VARIABLES APPROACH

Authors

  • JOSE M. FERNANDEZ,

    1. Fernandez: Assistant Professor, Department of Economics, College of Business, University of Louisville, Louisville, KY 40292. Phone +1 502 852 4861, Fax +1 502 852 7672, E-mail jose.fernandez@louisville.edu
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  • DAVID H. HOWARD,

    1. Howard: Associate Professor, Department of Health Policy and Management, Rollins School of Public Health, Emory University, Atlanta, GA 30322. Phone +1 404 727 3907, Fax +1 404 727 9198, E-mail david.howard@emory.edu
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  • LISA STOHR KROESE

    1. Stohr Kroese: Department of Economics, College of Business, University of Louisville, Louisville, KY 40292. Phone +1 502 852 4861, Fax +1 502 852 7672, E-mail lisastohr@gmail.com
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    • We wish to thank Partha Deb, Lan Shi, and seminar/session participants at the University of Louisville; the Midwest Economic Association Meetings, Evanston, IL; the American Society of Health Economist Conference, Ithaca, NY; and the American Economic Association Meetings in Denver, CO.


Abstract

Transplantation is notable for the degree to which resources are allocated via administrative rather than market mechanisms. However, non-monetary incentives still permeate the system. Using instrumental variable regression, we estimate the substitution patterns between cadaveric and living kidney donations in the United States from 1988 to 2008. On average, a decrease of two to five cadaveric donations causes living kidney donations to increase by one. Disaggregating living donors into blood-related and non-blood-related donors, the strongest effect is found among non-blood-related donors known to the organ recipient. A 1% increase of cadaveric donations decreases living donations from this group by 1.54%. (JEL D62, D64, I1)

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