04 Jun Question Economics 301 Fall 2014 Problem Set 1
Question
Economics 301
Fall 2014
Problem Set 1
Two randomly selected questions (chosen by Professor Dickert-Conlin) will be graded for credit. All
graded questions are worth 10 points. Always show all your work, so that you can receive partial credit.
Use extra pages if necessary, but make sure you clearly indicate where the rest of your answer is.
1. Wales recently voted to change the human organ donation process following a death. Currently,
Welsh citizens carry cards to indicate that they would like to donate their organs upon death-this is
known as informed consent. Beginning December 2014, Wales will change to a presumed consent, so
that organs will be donated unless the person indicated before death that they did not want their organs
donated. http://www.bbc.com/news/uk-wales-24032031
a. What do you believe are the intended benefits of presumed consent?
b. Speculate about what unintended costs or benefits there might be from presumed consent relative to
informed consent?
The following graph shows
how the number of organ
donations is related to the
donation policy of the county.
The horizontal axis shows the
country and the vertical axis
shows the number of
donations/person in the
country. Source: The impact
of presumed consent legislation
on cadaveric organ donation: a
cross-country study A Abadie,
S Gay – Journal of health
economics, 2006.
c. Is there a correlation between the type of donation policy (presumed consent and informed consent)
and the number of organ donations? Explain.
1
d. Is your answer to part c a positive or normative analysis? Briefly explain.
e. List things that might determine the level of organ donation in a country. (If you were in class
Tuesday 9/2, you might have a starting list).
f. Based on the diagram, can you conclude that changing from informed consent to presumed
consent will CAUSE a change in organ donations in Wales? Why or why not?
g. Is this analysis based on an actual experiment or quasi-experiment? What is the treatment group
and what is the control group?
h. Briefly, do you believe that organ donation should be presumed or informed consent? Is this a
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