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  3. American Economic Review
  4. July 2020
  5. Incentivized Kidney Exchange

Incentivized Kidney Exchange

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Abstract

Over the last 15 years, kidney exchange has become a mainstream paradigm to increase transplants. However, compatible pairs do not participate, and full benefits from exchange can be realized only if they do. We propose incentivizing compatible pairs to participate in exchange by insuring their patients against future renal failure via increased priority in deceased-donor queue. We analyze equity and welfare benefits of this scheme through a new dynamic continuum model. We calibrate the model with US data and quantify substantial gains from adopting incentivized exchange, both in terms of access to living-donor transplants and reduced competition for deceased-donor transplants.

Citation

Sönmez, Tayfun, M. Utku Ünver, and M. Bumin Yenmez. 2020. "Incentivized Kidney Exchange." American Economic Review, 110 (7): 2198-2224. DOI: 10.1257/aer.20170950

Additional Materials

JEL Classification

  • D47 Market Design
  • I11 Analysis of Health Care Markets
  • I12 Health Behavior
  • I18 Health: Government Policy; Regulation; Public Health