An analysis of economic incentives to encourage organ donation: evidence from Chile

Marcela Parada-Contzen () and Felipe Vásquez-Lavín ()
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Marcela Parada-Contzen: Universidad de Concepción
Felipe Vásquez-Lavín: Universidad del Desarrollo
Authors registered in the RePEc Author Service: Felipe Antonio Vásquez Lavín

Latin American Economic Review, 2019, vol. 28, issue 1, 1-18

Abstract: Abstract We perform a cost–benefit analysis on the introduction of monetary incentives for living kidney donations by estimating the compensation that would make an individual indifferent between donating and not donating a kidney while alive using Chilean data. We find that monetary incentives of US$12,000 save US$38,000 to health care system per donor and up to US$169,871 when we consider the gains in quality of life of receiving an organ. As one allows the incentives to vary depending on the individual position on the wage distribution, the compensation ranges from US$4214 to US$83,953. Importantly, introducing payments to living donors payable by a third party helps patients who currently may not have access to necessary medical treatment. Therefore, exclusions in access for organs due to the monetary constraints can be prevented.

Keywords: Organ donation; Compensations to living donors; Cost–benefit analysis (search for similar items in EconPapers)
JEL-codes: D61 I18 K32 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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DOI: 10.1186/s40503-019-0068-2

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