The Impact of Tax Policies on Living Organ Donations in the United States
American Journal of Transplantation, Forthcoming
26 Pages Posted: 29 May 2012
Date Written: January 1, 2012
In an effort to increase living organ donation, 15 states passed tax deductions and 1 a tax credit to help defray potential medical, lodging and wage loss costs between 2004 and 2008. To assess the impact of these policies on living donation rates, we used a differences-in-differences strategy which compares the pre- and post-legislation change in living donations in states that passed legislation against the same change in those states that did not. We found no statistically significant effect of these tax policies on donation rates. Furthermore, we found no evidence of any lagged effects, differential impacts by gender, race or donor relationship, or impacts on deceased donation. Possible hypotheses to explain our findings are: the cash value of the tax deduction may be too low to defray costs faced by donors, lack of public awareness about the existence of these policies, and that states that were proactive enough to pass tax policy laws may have already depleted donor pools with previous interventions.
Keywords: tax, living organ donation, state policy, United States
JEL Classification: I10, I18 H30, H75
Suggested Citation: Suggested Citation