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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
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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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