“…Recent decades have seen a large rise in the fraction of Americans reporting no religious affiliation, and even giving to religious causes (traditionally largest area of charitable giving by far) has begun to fall while giving overall continues to grow (Hout and Fischer, 2002;Velasco, 2015;Campbell and Putnam, 2012;Voas and Chaves, 2016). This shift is noteworthy as studies have shown that religiosity is strongly related to a variety of economically and socially relevant outcomes (Fruehwirth, Iyer, and Zhang, 2016;Hungerman, 2014;Fletcher and Kumar, 2014; see Iyer, 2016 for a review), and that congregations provide a variety of public goods, often jointly with the government. 2 In this time of declining religion, our work suggests that such joint provision represents not only a source of competition between church and state but also a potentially crucial source of subsidization.…”