Innovation and Health Inequality: Evidence from Direct-Acting Antivirals
Working Paper 33735
DOI 10.3386/w33735
Issue Date
We study disparities in liver transplant allocation when innovation alleviates the scarcity of organs. When direct-acting antivirals for Hepatitis C (HCV) reduced HCV+ liver demand, we show a disproportionate increase in White HCV- liver transplants (56.6%) relative to Black HCV- transplants (11.9%). The time to transplant decreased (31.1%), and the transplant rate increased (19.5pp), only for White HCV- patients. Our results are surprising because liver health is the primary determinant of transplant priority and marginal White patients were of better liver health. We show more similar gains when we focus on privately insured patients and/or areas with more Black patients.