SUMMARY:
A medical internship is mandatory for all medical students graduating from a
Danish university. The internships are distributed fairly even amongst most
Danish hospitals, m.a. in order to secure a steady inflow of new doctors to all
regions of Denmark. When allocating the graduates to an internship by lottery,
the National Board of Health takes into account only the candidates preferences
over the various internships, for reasons discussed in the paper. However, a
problem, relating to the lottery which the NBH uses, is that the lottery itself
is not efficient in an economic sense. By way of simulations this article shows
how an alternative lottery built on the so-called EPS-algorithm developed by
Katta and Sethuraman [Journal of Economic Theory 131, 231-250] performs better
than the lottery used today. This, along with other problematic aspects such as
black-market trading of internships, indicates that a replacement of the
currently used lottery may be beneficial for the NBH as well as the graduating
medical students. PDF