Your spouse is dying of kidney disease. You want to give her one of your kidneys but tests show that it is incompatible with her immune system. Utter anguish and frustration. Is there anything that you can do? Today the answer is yes. Transplant centers are now helping to arrange kidney swaps. You give to the spouse of another donor who gives to your spouse. Pareto would be proud. Even a few three-way swaps have been conducted.
But why stop at three? What about an n-way swap? Let’s add in the possibility of an exchange that raises your spouse on the queue for a cadaveric kidney. And let us also recognize that even if your kidney is compatible with your spouse’s there may be a better match. Is there an allocation system that makes all donors and spouses better off (or at least no worse off) and that maximizes the number of beneficial swaps? In an important paper (Warning! Very technical. Requires NBER subscription.) Alvin Roth and co-authors describe just such a mechanism and show that it could save many lives. Who says efficiency is a pedestrian virtue?
See here for more on how to alleviate the shortage of transplant organs.
1. Incarnations: A History of India in Fifty Lives, by Sunil Khilnani. A highly readable introduction to Indian history, structured around the lives of some of its major figures. I passed along my copy to Alex.
2. Haruki Murakami, Absolutely on Music: Conversations with Seiji Ozawa. More for classical music and Ojawa fans than Murakami readers, this is nonetheless an easy to read and stimulating set of interviews for any serious classical music listener. They are most interesting on Mahler.
3. Elsa Morante, History. In America, this is one of the least frequently read and discussed great European novels of the 20th century.
4. Miriam J. Laugesen, Fixing Medical Prices: How Physicians are Paid. Will people still care about these issues for the next four years? I hope so, because this is the best book I know of on Medicare pricing and its influence on pricing throughout the broader U.S. health care system.
My copy of Joel Mokyr, A Culture of Growth: The Origins of the Modern Economy has arrived. It is a very good statement of how political fragmentation and intensified intellectual competition drove modernity and the Industrial Revolution.
I have only perused John H. Kagel and Alvin E. Roth, Handbook of Experimental Economics, volume 2, but it appears to be an extremely impressive contribution.
Marc Levinson’s An Extraordinary Time: The End of the Postwar Boom and the Return of the Ordinary Economy details what made the post World War II era so special in terms of its economics and income distribution and why it will be so hard to recreate.
Chris Hayes’s A Colony in a Nation, due out in March, he argues that racial equality really hasn’t improved much since 1968.
Guillermo A. Calvo, Macroeconomics in Times of Liquidity Crises is a useful book on sudden stops and related ideas.
Arrived in my pile is Yuval Noah Harati, Homo Deus: A Brief History of Tomorrow.