IDEAS home Printed from https://ideas.repec.org/p/jrp/jrpwrp/2007-056.html
   My bibliography  Save this paper

Democratic Capitalism and Philanthropy in a Global Economy

Author

Listed:
  • Zoltan J. Acs

    (George Mason University and Max Planck Institute of Economics)

  • Sameeksha Desai

    (Max Planck Institute of Economics and George Mason University)

Abstract

Democratic capitalism has become the popular paradigm in the modern world, and it is spreading further through globalization. It is a model based on growth, expansion and constant innovation. However, it is accompanied by social problems which may worsen despite overall gains in wealth. In this paper, we suggest that democratic capitalist societies may benefit from the application of what has been a primarily American institution: Philanthropy. We present the Entrepreneurship-Philanthropy Cycle, which demonstrates the relationship between wealthy entrepreneurs, philanthropic contributions and economic opportunity. As a nonmarket and nonstate mechanism, philanthropy is unique in its structure and operations, and may offer the ideal approach to solving social problems. We suggest that both the internationalization of American foundations, and the growth of domestic philanthropy, can help developing countries offset social problems.

Suggested Citation

  • Zoltan J. Acs & Sameeksha Desai, 2007. "Democratic Capitalism and Philanthropy in a Global Economy," Jena Economics Research Papers 2007-056, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2007-056
    as

    Download full text from publisher

    File URL: https://oweb.b67.uni-jena.de/Papers/jerp2007/wp_2007_056.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kingdon, Geeta, 1996. "The Quality and Efficiency of Private and Public Education: A Case-Study of Urban India," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(1), pages 57-82, February.
    2. Kenneth E. Boulding, 1962. "Notes on a Theory of Philanthropy," NBER Chapters, in: Philanthropy and Public Policy, pages 57-72, National Bureau of Economic Research, Inc.
    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.
    4. Thomas Ireland, 1969. "The calculus of philanthropy," Public Choice, Springer, vol. 7(1), pages 23-31, September.
    5. Zoltan J. Acs & Ronnie J. Phillips, 2008. "Entrepreneurship and Philanthropy in American Capitalism," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 34, pages 509-524, Edward Elgar Publishing.
    6. Frank G. Dickinson, 1970. "The Changing Position of Philanthropy in the American Economy," NBER Books, National Bureau of Economic Research, Inc, number dick70-1, March.
    7. Wren, Daniel A., 1983. "American Business Philanthropy and Higher Education in the Nineteenth Century," Business History Review, Cambridge University Press, vol. 57(3), pages 321-346, October.
    8. Mark Casson (ed.), 1990. "Entrepreneurship," Books, Edward Elgar Publishing, number 537.
    9. Albert Danielsen, 1975. "A theory of exchange, philanthropy and appropriation," Public Choice, Springer, vol. 24(1), pages 13-26, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Boettke, Peter J. & Coyne, Christopher J., 2009. "Context Matters: Institutions and Entrepreneurship," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 5(3), pages 135-209, March.
    2. Zoltán J. Ács & Mary C. Boardman & Connie L. McNeely, 2015. "The social value of productive entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 3, pages 42-53, Edward Elgar Publishing.
    3. Zoltan Acs, 2012. "Public Policy in an Entrepreneurial Society," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 36, Edward Elgar Publishing.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. Cai, Meina & Caskey, Gregory W. & Cowen, Nick & Murtazashvili, Ilia & Murtazashvili, Jennifer Brick & Salahodjaev, Raufhon, 2022. "Individualism, economic freedom, and charitable giving," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 868-884.
    4. 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.
    5. Mathias, Blake D. & Solomon, Shelby J. & Madison, Kristen, 2017. "After the harvest: A stewardship perspective on entrepreneurship and philanthropy," Journal of Business Venturing, Elsevier, vol. 32(4), pages 385-404.
    6. Frank D. Tinari, 1978. "A Theoretical Foundation for the Empirical Analysis of Household Monetary Donations: A Note," The American Economist, Sage Publications, vol. 22(1), pages 72-76, March.
    7. Chen, Yuanyuan & Feng, Shuaizhang & Han, Yujie, 2020. "The effect of primary school type on the high school opportunities of migrant children in China," Journal of Comparative Economics, Elsevier, vol. 48(2), pages 325-338.
    8. Tiwari, Sandeep Kumar & Paltasingh, Kirtti Ranjan & Jena, Pabitra Kumar, 2020. "Caste-class association and school participation in Uttar Pradesh, India: Evidence from NSSO data," International Journal of Educational Development, Elsevier, vol. 79(C).
    9. Singh, Renu & Sarkar, Sudipa, 2015. "Does teaching quality matter? Students learning outcome related to teaching quality in public and private primary schools in India," International Journal of Educational Development, Elsevier, vol. 41(C), pages 153-163.
    10. Pal, Sarmistha & Saha, Bibhas, 2014. "In 'Trusts' We Trust: Socially Motivated Private Schools in Nepal," IZA Discussion Papers 8270, Institute of Labor Economics (IZA).
    11. Meh, Cesaire A. & Quadrini, Vincenzo, 2006. "Endogenous market incompleteness with investment risks," Journal of Economic Dynamics and Control, Elsevier, vol. 30(11), pages 2143-2165, November.
    12. Harold Alderman & Peter F. Orazem & Elizabeth M. Paterno, 2001. "School Quality, School Cost, and the Public/Private School Choices of Low-Income Households in Pakistan," Journal of Human Resources, University of Wisconsin Press, vol. 36(2), pages 304-326.
    13. Lugo, Maria Ana, 2011. "Heterogenous peer effects, segregation and academic attainment," Policy Research Working Paper Series 5718, The World Bank.
    14. Pal, Sarmistha, 2010. "Public infrastructure, location of private schools and primary school attainment in an emerging economy," Economics of Education Review, Elsevier, vol. 29(5), pages 783-794, October.
    15. Yli-Renko, H. & Autio, E. & Tontti, V., 2002. "Social capital, knowledge, and the international growth of technology-based new firms," International Business Review, Elsevier, vol. 11(3), pages 279-304, June.
    16. M J Mancebón & M A Muñiz, 2008. "Private versus public high schools in Spain: disentangling managerial and programme efficiencies," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(7), pages 892-901, July.
    17. Jean Bonnet & Thomas Brau & Antonia Guijarro Madrid, 2011. "Innovative entrepreneurship as a way to meet professional dissatisfactions," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201121, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    18. Kumar, Deepak & Choudhury, Pradeep Kumar, 2021. "Do private schools really produce more learning than public schools in India? Accounting for student’s school absenteeism and the time spent on homework," International Journal of Educational Development, Elsevier, vol. 83(C).
    19. Geeta G. Kingdon, 2003. "Where has all the bias gone? Detecting gender-bias in the household allocation of educational expenditure," CSAE Working Paper Series 2003-13, Centre for the Study of African Economies, University of Oxford.
    20. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2009. "The Effects of Multinational Production on Wages and Working Conditions in Developing Countries," World Scientific Book Chapters, in: Globalization And International Trade Policies, chapter 17, pages 623-687, World Scientific Publishing Co. Pte. Ltd..

    More about this item

    Keywords

    Philanthropy; entrepreneurship; democratic capitalism; foundation; social problems; India education; social innovation;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • P10 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - General
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jrp:jrpwrp:2007-056. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Markus Pasche (email available below). General contact details of provider: http://www.jenecon.de .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.