The Catholic Church operates as a vast, hierarchical institution with significant financial resources and complex internal dynamics, yet there has been little economic analysis of the incentives driving its decision-making. Applying microeconomic frameworks—such as principal-agent problems, rent-seeking, and cost-benefit analysis—could help explain behaviors like fundraising strategies, doctrinal enforcement, and responses to financial pressures. This approach could provide valuable insights for academics, policymakers, Church reformers, and critics seeking to understand or predict institutional behavior.

Key Questions and Economic Frameworks

One way to analyze the Church’s decision-making is to examine the incentives at different levels of its hierarchy:

• Monetary and non-monetary incentives: For example, parish priests may seek promotions, bishops may manage diocesan finances under constraints, and Vatican officials may prioritize institutional power.
• Resource allocation: How the Church balances spending on building maintenance versus evangelism, especially under financial strain.
• Revenue strategies: Whether fundraising methods (e.g., donations, investments, asset sales) align with the Church’s spiritual mission.

This analysis could draw parallels to other institutions, such as universities or corporations, where similar economic frameworks have been applied successfully.

Potential Applications and Stakeholders

Such an economic analysis could benefit several groups:

• Academics: Researchers in economics, religious studies, or institutional behavior could use this lens to explore underexamined aspects of the Church.
• Church administrators: Insights might help diocesan leaders or Vatican officials improve governance or financial sustainability.
• Critics and reformers: Economic arguments could support calls for transparency or accountability.
• Policymakers: Governments dealing with tax exemptions or legal disputes involving the Church could better understand its decision-making processes.

Execution Strategies

A possible starting point would be a working paper focusing on a narrow question, such as how dioceses allocate funds between schools and legal settlements. This could involve:

• A literature review to identify gaps in existing research.
• Case studies analyzing specific Church behaviors through microeconomic frameworks.
• Interviews with clergy or financial officers (if accessible) to gather qualitative data.
• Simple economic models, such as game theory applied to hierarchical decision-making.

Challenges like data scarcity or cultural resistance could be addressed by using proxies (e.g., property records) or framing the research as "stewardship analysis" to reduce stigma.

By applying economic tools to the Catholic Church’s operations, this project could offer a fresh perspective on an institution that has largely been studied through theological or sociological lenses.