Investigating the Relationship Between Medical Crowdfunding and Personal Bankruptcy in the United States: Evidence of A Digital Divide

摘要: As of 2007, an estimated 62% individual bankruptcy filings in the United States were a direct result costs borne from medical treatment following illness or injury, up 46% 2001. This pressing issue is only getting worse and need some relief. Accordingly, this work, we consider potential relatively recent phenomenon to mitigate problem: online crowdfunding for expenses, wherein patients reach out their social network monetary support via platforms that facilitate process. We leverage proprietary data supplied by largest platform expenses States, GiveForward, which combine with county records filing, assess relationship between two. report evidence reduced financial burden faced many individuals over our period observation: estimates indicate GiveForward has helped prevent 200,000 bankruptcies last 8 years. To account endogeneity unobserved heterogeneity, estimations incorporate combination time fixed effects, draw on instrument unique platform: provision campaign coaching services. Our main findings are corroborated first hand results survey conducted 133 organizers at GiveForward. Secondary analyses predominantly influences volume Chapter 7 bankruptcies. Additionally, as been reported entrepreneurship literature, find acts substitute more traditional funding sources, namely home equity. discuss implications healthcare, government policy crowdfunding.