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Inefficiency in Cadaveric Organ Procurement

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  • T. Randolph Beard
  • David L. Kaserman
  • Richard P. Saba

Abstract

The shortage of cadaveric human organs made available for transplantation has reached critical proportions and is now causing over 6000 deaths each year in the United States alone. Economically, this shortage appears to stem from at least two principal underlying causes, both of which are attributable to the 1984 National Organ Transplant Act: (i) a legal prohibition on payments to organ donors and/or their surviving family members; and (ii) the legislatively mandated structure of the organ procurement industry, which specifies a group of nonprofit regional monopsonists as collection agents. Here, we focus' on some consequences of the latter restriction. Using a frontier methodology, we estimate the magnitude of the inefficiencies exhibited by the individual procurement agencies (relative to the most efficient) after controlling for exogenous factors. Our findings show that, even if these inefficiencies could (somehow) be completely eliminated, the organ shortage would still persist.

Suggested Citation

  • T. Randolph Beard & David L. Kaserman & Richard P. Saba, 2006. "Inefficiency in Cadaveric Organ Procurement," Southern Economic Journal, John Wiley & Sons, vol. 73(1), pages 13-26, July.
    • Handle: RePEc:wly:soecon:v:73:y:2006:i:1:p:13-26
    DOI: 10.1002/j.2325-8012.2006.tb00754.x
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    References listed on IDEAS

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    1. Abadie, Alberto & Gay, Sebastien, 2006. "The impact of presumed consent legislation on cadaveric organ donation: A cross-country study," Journal of Health Economics, Elsevier, vol. 25(4), pages 599-620, July.
    2. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
    3. Howard, David H., 2002. "Why do transplant surgeons turn down organs?: A model of the accept/reject decision," Journal of Health Economics, Elsevier, vol. 21(6), pages 957-969, November.
    4. Caudill, Steven B & Ford, Jon M & Gropper, Daniel M, 1995. "Frontier Estimation and Firm-Specific Inefficiency Measures in the Presence of Heteroscedasticity," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(1), pages 105-111, January.
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