Behavioral Economics Seminar: Why does church tax give a higher revenue than donations?
The Behavioral Economics group at IFRO invite to open seminars with a range of subjects within Behavioral Economics.
Sidsel Kjems, PhD fellow at Department of Food and Resource Economics, University of Copenhagen, will present: Why does church tax give a higher revenue than donations
Comparing the sources and level of financing of seven national churches in the Nordic countries, England and Scotland shows that financing by a taxation right yields larger revenue for a national church then financing by general tax over the state or municipality budgets. Tax-deductible, private donations yield the lowest revenue of the three financing models.
Classic economic theory finds it hard to explain why volunteer tax yields revenue that are 5-8 time higher than volunteer donations; even though donations are tax-deductible and the church tax is not. The discussion draws on the psychology of Behavioral Economics to explain this phenomenon.
For further information, contact:
Catrine Jacobsen, firstname.lastname@example.org