IDEAS home Printed from https://ideas.repec.org/p/jrp/jrpwrp/2007-056.html

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. Thomas Ireland, 1969. "The calculus of philanthropy," Public Choice, Springer, vol. 7(1), pages 23-31, September.
    2. 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.
    3. Frank G. Dickinson, 1970. "The Changing Position of Philanthropy in the American Economy," NBER Books, National Bureau of Economic Research, Inc, number dick70-1.
    4. 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.
    5. Mark Casson (ed.), 1990. "Entrepreneurship," Books, Edward Elgar Publishing, number 537.
    6. 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.
    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. Albert Danielsen, 1975. "A theory of exchange, philanthropy and appropriation," Public Choice, Springer, vol. 24(1), pages 13-26, December.
    9. Zoltan J. Acs & David Audretsch & Ronnie J. Phillips & Sameeksha Desai, 2007. "The Entrepreneurship-Philanthropy Nexus: Nonmarket Source of American Entrepreneurial Capitalism," Jena Economics Research Papers 2007-025, Friedrich-Schiller-University Jena.
    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. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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).
    8. 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.
    9. Maitra, Pushkar & Pal, Sarmistha & Sharma, Anurag, 2011. "Reforms, Growth and Persistence of Gender Gap: Recent Evidence from Private School Enrolment in India," IZA Discussion Papers 6135, IZA Network @ LISER.
    10. Debra Shepherd, 2015. "Learn to teach, teach to learn: A within-pupil across-subject approach to estimating the impact of teacher subject knowledge on South African grade 6 performance," Working Papers 01/2015, Stellenbosch University, Department of Economics.
    11. Maitra, Pushkar & Pal, Sarmistha & Sharma, Anurag, 2016. "Absence of Altruism? Female Disadvantage in Private School Enrollment in India," World Development, Elsevier, vol. 85(C), pages 105-125.
    12. Eugenia Froedge Toma, 2005. "Private Schools in a Global World," Southern Economic Journal, John Wiley & Sons, vol. 71(4), pages 692-704, April.
    13. David De La Croix & Matthias Doepke, 2009. "To Segregate or to Integrate: Education Politics and Democracy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(2), pages 597-628.
    14. Eva Crespo-Cebada & Francisco Pedraja-Chaparro & Daniel Santín, 2014. "Does school ownership matter? An unbiased efficiency comparison for regions of Spain," Journal of Productivity Analysis, Springer, vol. 41(1), pages 153-172, February.
    15. Patrick McEwan, 2001. "The Effectiveness of Public, Catholic, and Non-Religious Private Schools in Chile's Voucher System," Education Economics, Taylor & Francis Journals, vol. 9(2), pages 103-128.
    16. Philippe Fontaine, 2000. "Making use of the past: theorists and historians on the economics of altruism," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 7(3), pages 407-422.
    17. László Szerb, 2008. "The Examination of the Level of Entrepreneurship in Eight Central Eastern European Countries," Proceedings-6th International Conference on Management, Enterprise and Benchmarking (MEB 2008), in: György Kadocsa (ed.),6th International Conference on Management, Enterprise and Benchmarking MEB 2008-Proceedings, pages 69-83, Óbuda University, Keleti Faculty of Business and Management.
    18. Bizenjo, Sikander, 2020. "Education in Pakistan: Are low-cost private schools closing the gender gap?," International Journal of Educational Development, Elsevier, vol. 77(C).
    19. Thomas R. Ireland, 2016. "Gordon Tullock as a teacher and mentor," Journal of Bioeconomics, Springer, vol. 18(2), pages 107-111, July.
    20. Kamlesh Narwana, 2019. "Hierarchies of Access in Schooling: An Exploration of Parental School Choice in Haryana," Millennial Asia, , vol. 10(2), pages 183-203, August.

    More about this item

    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.