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December 22, 2007


David Beckworth


Thanks for discussing my article in your blog. I have made some changes to the paper in getting it ready for an economic journal. Some of the changes are economic terms that may be foreign to some readers of your blog. So, for the sake of interested readers here are a few definitions that may be useful:

(1) Substitution effect: the idea that as wages increase there is more incentive to work more hours—pay me more and I will work more. Alternatively, the cost of not working increases.

(2) Income effect: the idea that as wages increase there is less incentive to work—the same amount of income can now be generated with fewer hours of work. Or alternatively, with higher wages one can afford to buy more leisure.

(3) Non-labor income effect: same implications as (2) but now the income comes from sources other than work— income from ownership of rental properties, dividends from ownership of stocks, government transfer payments.

(4) Wealth effect: the idea that as wealth increases there is less need to save and more freedom to spend. For example, the housing boom of 2003-2005 generated a wealth effect that led to increased consumption.

As a follow up to this paper, I am interested in seeing what happens to financial giving during recessions. I can think of two opposing effects. On one hand, individuals lose their jobs so giving falls along with income levels. On the other hand, individuals may decide to give proportionally more during a recession as a way to find favor with God. Also, the increased conversion rate during a recession implies a larger membership base for tithes and offerings.

Any thoughts?


This words are really appreciative that major demographic, cultural and economic trends or the specific social context of a given congregation or mission and thanks for informing and sharing on David Beckworth research paper it helps a lot in Church growth.

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