The Effects of Defaults and Financial Models on the Levels of Revenue for Established Churches

The purpose of this article is to explain why the revenue of the established churches in different countries differ substantially.1 Former research has compared the level of revenue of the established Protestant churches in seven countries: The Nordic countries (Denmark, Norway, Sweden, Iceland, and Finland), England, and Scotland.2 This comparative analysis shows that the revenue in percentage of GDP of the established churches in the Church of England and Church of Scotland is only about one-fourth of the revenue of the established church in Denmark. The revenue of the established churches in Norway and Iceland is about one-half of the revenue of the established church in Denmark, while the revenue of the established churches in Sweden and especially Finland is higher. The question we will address in this article is: Why do the levels of finance differ so greatly between these countries? The established churches in the Nordic countries as well as Scotland and England have many similarities in terms of history, entwinement with the state, and the public role and public responsibilities of the churches.3 Moreover, the level of religiosity does not differ significantly between the seven countries.4 In each of these countries, the established church constitutes an important part of a given country’s heritage, both material and immaterial. That heritage includes an entwinement between the state and the church, mainly based on historical dependency rather than a rational consideration of the public role in relation to the established churches. The established churches in the seven countries therefore constitute a good case for comparing and explaining the levels of revenue of the churches.

Business · Default · Economics · Revenue · Finance · Fiscal Policy and Economic Growth · Islamic Finance and Banking Studies · Religion, Society, and Development