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

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 US12,000 save US8,000 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...