Economics of philanthropy—evidence from health crowdfunding

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.