Abstract

http://ssrn.com/abstract=904028
 
 

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The (After) Life-Cycle Theory of Religious Contributions


S. Brock Blomberg


Claremont Colleges - Robert Day School of Economics and Finance

Thomas DeLeire


Professor; National Bureau of Economic Research (NBER); Institute for the Study of Labor (IZA)

Gregory D. Hess


Claremont McKenna College - Robert Day School of Economics and Finance; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

November 2006

CESifo Working Paper No. 1854

Abstract:     
We construct and estimate an economic model of religious giving. We employ a dynamic consumer optimization model with mortality in which intra-temporal utility stems from both consumption and religious contributions. Individuals also decide how to allocate resources between religious contributions (which have both a this-life consumption value and an after-life investment value) and other consumption expenditures. If religious contributions do not have an after-life investment value, the ratio of contributions to consumption expenditures should be unrelated to the probability of death. However, if there is an investment value from religious giving, individuals should allocate a greater share of their income to religious contributions as their probability of death increases. We estimate the model using data from the Consumer Expenditure Survey on the consumption and religious contribution patterns of a repeated cross-section of households and of a synthetic cohort panel. We find strong evidence that individuals behave as if religious contributions have a value in the after-life, in a manner consistent with the after life-cycle model. The estimates of the structural parameters of the model also imply that while after-life investment considerations (i.e. impending death) are an important determinant of the life-cycle profile of religious contributions, within-life (i.e. religious consumption) factors pin down a household's average level of religious contributions over a lifetime.

Number of Pages in PDF File: 41

Keywords: God, Life-cycle Consumption, Religion, Tithing

JEL Classification: H1, H5, H8

working papers series


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Date posted: May 24, 2006  

Suggested Citation

Blomberg, S. Brock and DeLeire, Thomas and Hess, Gregory D., The (After) Life-Cycle Theory of Religious Contributions (November 2006). CESifo Working Paper No. 1854. Available at SSRN: http://ssrn.com/abstract=904028

Contact Information

S. Brock Blomberg (Contact Author)
Claremont Colleges - Robert Day School of Economics and Finance ( email )
500 E. Ninth St.
Claremont, CA 91711-6420
United States
Thomas DeLeire
Professor ( email )
3600 N Street, NW Suite 200
Washington, DC 20057
United States
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
Gregory D. Hess
Claremont McKenna College - Robert Day School of Economics and Finance ( email )
500 E. Ninth St.
Bauer Center
Claremont, CA 91711-6420
United States
CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
Poschinger Str. 5
Munich, DE-81679
Germany
HOME PAGE: http://www.CESifo.de
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