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Entrepreneurial Philanthropy and University Creation: An Economic Model

Author

Listed:
  • João R. Faria

    (University of Texas)

  • Franklin G. Mixon

    (Columbus State University)

Abstract

A century ago, great entrepreneurs of American capitalism created major research universities. Today, donations are largely being channeled to the most successful universities. This paper explores the impact of entrepreneurial philanthropy on the creation and endowment of universities. It presents an integro-differential model that yields a nonlinear relation between university endowment and quality. Empirical tests validate the model, showing that university quality bears a nonlinear (quadratic) relationship with private giving (endowments).

Suggested Citation

  • João R. Faria & Franklin G. Mixon, 2018. "Entrepreneurial Philanthropy and University Creation: An Economic Model," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(3), pages 1067-1086, September.
    • Handle: RePEc:spr:jknowl:v:9:y:2018:i:3:d:10.1007_s13132-016-0394-4
    DOI: 10.1007/s13132-016-0394-4
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    References listed on IDEAS

    as
    1. Zoltan J. Acs & Pontus Braunerhjelm, 2008. "The Entrepreneurship-Philanthropy Nexus: Implication for Internationalization," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 35, pages 525-558, Edward Elgar Publishing.
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    3. Zoltan J. Acs & David Audretsch & Ronnie J. Phillips & Sameeksha Desai, 2007. "The Entrepreneurship-Philanthropy Nexus: Nonmarket Source of American Entrepreneurial Capitalism," Papers on Entrepreneurship, Growth and Public Policy 2007-09, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
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    5. Brendan M. Cunningham & Carlena K. Cochi-Ficano, 2002. "The Determinants of Donative Revenue Flows from Alumni of Higher Education: An Empirical Inquiry," Journal of Human Resources, University of Wisconsin Press, vol. 37(3), pages 540-569.
    6. João Ricardo Faria, 2011. "An Integro-Differential Approach To Terrorism Dynamics," Defence and Peace Economics, Taylor & Francis Journals, vol. 22(6), pages 595-605, September.
    7. Shawn Kantor & Alexander Whalley, 2014. "Knowledge Spillovers from Research Universities: Evidence from Endowment Value Shocks," The Review of Economics and Statistics, MIT Press, vol. 96(1), pages 171-188, March.
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    More about this item

    Keywords

    Entrepreneurial philanthropy; Economics of education; University endowments;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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