THE OPTIMAL SIZE OF A RELIGIOUS CONGREGATION - AN ECONOMIC-THEORY OF CLUBS ANALYSIS

The economic theory of clubs model is applied to determine the optimal size of a religious congregation. The optimal size is specified to be where total contributions are maximized. This occurs where the margin al benefits of adding a new member (in terms of contributions gained f rom that new member) equal the marginal costs of that new member (in t erms of contributions lost from existing members). Benefits from addin g members include enhanced fellowship opportunities and the spreading of fixed costs across a broader base. Costs include the congestion of facilities and a greater tendency to free ride. The model is empirical ly tested for four denominations. The average Catholic parish is found to be much larger than its optimal size, while the average Episcopali an, Lutheran, and Methodist congregations are all found to be smaller than their optimal size.