Writing a policy analysis paper in microeconomics – kidney/organ donation/free market

Suppose you are a policy advisor for Governor Scott. He has just informed you that his constituents would like him to comment on the state of organ donation and address the inability of the current system to meet demand. His office is in charge of finding solutions to the difficult issue of organ trade.

He will be addressing the issue in the upcoming commission meeting and needs an economic analysis of the situation completed before then for review. Refer to the articles Black Market Bodies and Meat Market (posted below) to help you begin to your analysis. Use the articles and other references you may find to evaluate the limitations that exist with the current ‘solution’ to meeting organ demand in the US.

The governor asks that you draw upon your critical thinking and problem-solving skills in order to break down the complex problem that exists in the market for drugs and help him examine, propose, and support potential solutions. You are encouraged to propose an original solution or contribution even if it deviates from mainstream solutions.

In your analysis you must address the following:

• What is the general state of organ donation in the US according to the first article?
• Consider what would happen if the US did allow payment in exchange for kidney donation. Provide a critical analysis – use the supply/demand diagram to help illustrate and discuss the current state of the market and also what the market would look like in the case of a free market economy (deregulation).
• Who gains and who loses when deregulation occurs? Discuss the efficiency and equity of the market before and after the proposed deregulation.
• Explore the policies that are currently implemented across the globe (i.e. those discussed in the articles – routine removal, presumed consent, organ donor points, “no give, no take”, etc.). Evaluate the limitations of these policies. Also consider how these policies fare in terms of the efficiency vs. equity debate. (you do not need to critique them all, just select 2 or 3 that you find interesting/appealing)
• Come up with a policy proposal of your own that might help deal with the vast shortage of kidneys in the US. Use the supply/demand diagram to show how the policy will decrease the current shortage of kidneys and analyze the impact to society.
• If you had to pick from one of the policies you described, including your new proposal, which would you recommend for the US? Why? (If you feel strongly that our current policy is the best policy this is a valid argument, however you must defend your “no new policy” recommendation).