The Effect of Social Media on the Ethnic Dynamics in Donations to Disaster Relief Efforts

Deserina Sulaeman () and Johan Sulaeman
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Deserina Sulaeman: Department of Finance, NUS Business School, National University of Singapore, Singapore 119245, Singapore
Johan Sulaeman: Sustainable and Green Finance Institute (SGFIN), NUS Business School, National University of Singapore, Singapore 119245, Singapore

Sustainability, 2022, vol. 14, issue 19, 1-16

Abstract: Efficient resource-sharing via private transfers among households during natural disasters serves to foster a more resilient society. This study explores the effect of social media on private donations from households to natural disaster relief efforts. The donation pattern in a popular charitable crowdfunding platform exhibits inter-ethnic dynamics: Campaigns initiated by Hispanic fundraisers receive disproportionately fewer donations and lower donation amounts from non-Hispanic donors, relative to Hispanic donors. Moreover, we document a novel finding that social media statements from a political figure (President Donald Trump) influence the dynamic of private transfers across households from different ethnic groups. This finding provides a salient consideration for policymakers and government officials regarding the effects of their actions on society’s resilience and sustainability.

Keywords: household; sustainability; philanthropy; homophily; ethnic homophily; social media (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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