Gregory A. Krohn of Bucknell University, Pennsylvania developed a theoretical model to explain the economic behavior of religious congregations. Krohn tested the model on post-World War II data on Presbyterian congregations.
Aiming to discover how changes in prices, income, membership, social conditions, and government transfer payments have affected congregations’ receipts and expenditures, Krohn used this planning grant to develop an economic model, write a working paper, and create a database to estimate and test the model.
The model featured congregations as dependent on the preferences of its members over all the possible combination of consumer goods, leisure time, volunteer labor, and the goods and services produced by congregations.
The model resulted in mathematical expressions for the congregations’ volunteer time, contributions, resources purchased, goods and services produced, and donations to other organizations. These mathematical expressions are functions of the number of members, prices, wages, the capital stock and saving by congregations, social conditions, government transfer payments and other variables. The model sought to analyze how changes in the explanatory variables affect the economic activities of religious organizations.