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A Theory of Congregational Giving

Journal of Public Economic Theory

Published online on

Abstract

This paper proposes a model to explain a broad range of established empirical facts about giving and attendance rates in religious congregations. We treat the religious service collectively consumed by the congregation as a “participatory” public good, in the sense that while its quality increases in contributions, individual consumption varies by the amount of time devoted towards attendance. The model predicts that lower income individuals will be over‐represented in religious congregations, with giving concentrated among higher income members. Inclusive doctrine is shown to increase membership but reduce average giving and attendance, while “tithing” requirements reduce membership and increase total giving. This article is protected by copyright. All rights reserved.