The Economics of Organ Donation

The Economics of Organ Donation:

Almost 1,200 people received an organ nationally last year in Australia, but at any one time, about 1,600 people are waiting for organs like the lungs, liver, intestine and pancreas. Clearly the demand for organs is much higher than the supply of organs.

In Australia people are not allowed to donate organs in return for money. Should we consider using financial incentives to encourage more individuals to sign up as potential donors, or for family members to donate on behalf of a deceased relative where they did not express a preference?

What is the economic case for paying people to donate their organs? Compare the organ donation system in Australia with another country that takes a different approach. Would you agree with a system where donors were paid for their organs? If you don’t agree, suggest a policy that would increase the supply of organs.

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