Economics of Philanthropy — Evidence from Health Crowdfunding

Small Business Economics, Forthcoming

78 Pages Posted: 30 Apr 2018 Last revised: 26 Jan 2020

See all articles by Juliane Proelss

Juliane Proelss

Concordia University, Quebec; Trier University of Applied Sciences

Denis Schweizer

Concordia University

Tingyu Zhou

Florida State University

Date Written: January 23, 2020

Abstract

This paper is the first comprehensive empirical study on the economics of health crowdfunding (HCF) campaigns. We develop a new theoretical framework that focuses on the channels Donor-Patient-Psychology and Donor-Donor-Psychology to examine campaign funding speed. Our data highlight that, on average, campaign funding goals are achieved more rapidly if the patient is an infant girl, and if campaign descriptions are more comprehensive but less technical (easier to read). Furthermore, campaigns begun around holidays are funded more quickly, with the highest funding speed found for Christian holidays. We posit that this indicates a “warm-glow” effect. Examining donations controlling for campaign fixed effects, we document strong and economically significantly negative donor-to-donor peer effects, where contributions by donors with public profiles may be crowded out by the previous contributions of their peers.

Keywords: Altruism, Charity, Crowdfunding, Developing Countries, Fundraising, Health Care, Medicine, Philanthropy, Voluntary Contributions

JEL Classification: G21, I15, R30

Suggested Citation

Proelss, Juliane and Schweizer, Denis and Zhou, Tingyu, Economics of Philanthropy — Evidence from Health Crowdfunding (January 23, 2020). Small Business Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3169823 or http://dx.doi.org/10.2139/ssrn.3169823

Juliane Proelss

Concordia University, Quebec ( email )

1455 de Maisonneuve Blvd. W.
Montreal, Quebec H3G 1MB
Canada

Trier University of Applied Sciences ( email )

Scheidershof
Trier, 54293
Germany

Denis Schweizer (Contact Author)

Concordia University ( email )

1455 de Maisonneuve Blvd. W.
Montreal, Quebec H3G 1M8
Canada
+1 (514) 848-2424 ext. 2926 (Phone)
+1 (514) 848-4500 (Fax)

HOME PAGE: http://www.concordia.ca/jmsb/faculty/denis-schweizer.html

Tingyu Zhou

Florida State University ( email )

821 Academic Way
Tallahassee, FL 32306
United States

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