The "Sect Effect" in Charitable Giving: Distinctive Realities of Exclusively Religious Charitable Givers

An examination of the charitable giving behavior of 16,442 households reveals intriguing patterns consistent with the club-theoretic approach to religious sect affiliation. The club-theoretic model suggests that individuals with lower socioeconomic standing will rationally be more likely to align th...

Full description

Saved in:
Bibliographic Details
Published in:The American journal of economics and sociology 2007-10, Vol.66 (4), p.697-726
Main Authors: James, Russell N., Sharpe, Deanna L.
Format: Article
Language:English
Subjects:
Charitable giving
Charities
Charity
Consumer behavior
Consumer economics
Decision Models
Donation
Donations
Econometrics
Economic analysis
Economic Models
Economics and Religion
Extremism
Financial gifts
Households
Prediction
Rational Choice
Religion
Religious beliefs
Religious identity
Religious organizations
Sects
Single status
Socioeconomic Factors
Socioeconomics
Sociology
Sociology of religion
Studies
U.S.A
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:An examination of the charitable giving behavior of 16,442 households reveals intriguing patterns consistent with the club-theoretic approach to religious sect affiliation. The club-theoretic model suggests that individuals with lower socioeconomic standing will rationally be more likely to align themselves with exclusivistic sects. Because sect affiliation is also associated with more obligatory religious contributions, this approach generates novel predictions not anticipated by standard economic models of charitable behavior. Traditional analysis of charitable giving can mask the "sect effect" phenomenon, as low-income giving is dwarfed by the giving of the wealthy. However, the application of a two-stage econometric model—separating the participation decision from the subsequent decision regarding the level of gifting—provides unique insights. Basic socioeconomic factors have significant and opposite associations with different categories of giving, calling into question the treatment of charitable giving as a homogenous activity and supporting the understanding of sect affiliation, and potentially religious extremism, as rational choice phenomena.
ISSN:0002-9246
1536-7150
DOI:10.1111/j.1536-7150.2007.00536.x