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Religious Market Theory vs. Secularization: The Role of Religious Diversity Revisited

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  • Opfinger, Matthias

Abstract

Iannaccone's (1991) seminal paper assigns basic market principles to the market for religion. In a competitive market with high religious diversity the level of overall religiosity should increase. The Secularization Hypothesis suggests that the establishment of new churches casts doubt on the existing religion, which results in a reduction of religiosity. The present paper reinvestigates this relationship using a broader measure of religiosity than church attendance and calculating a more accurate index of religious diversity. This approach overcomes weaknesses of previous studies and generates more reliable results. These support the Secularization Hypothesis. Moreover, ethnic diversity has a strong positive impact on religiosity. Religiosity and national identity appear to be substitutes.

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Bibliographic Info

Paper provided by Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät in its series Hannover Economic Papers (HEP) with number dp-475.

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Length: 32 pages
Date of creation: Jun 2011
Date of revision:
Handle: RePEc:han:dpaper:dp-475

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Keywords: Religious Market Theory; Secularization Hypothesis; Religious Diversity; Religiosity; National Identity;

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Cited by:
  1. Martin Paldam & Erich Gundlach, 2009. "The Religious Transition. A Long-run Perspective," Kiel Working Papers 1576, Kiel Institute for the World Economy.
  2. Opfinger, Matthias & Gundlach, Erich, 2011. "Religiosity as a determinant of happiness," Open Access Publications from Kiel Institute for the World Economy 48360, Kiel Institute for the World Economy (IfW).
  3. Kenneth Harttgen & Matthias Opfinger, 2012. "National Identity and Religious Diversity," Research Papers in Economics 2012-07, University of Trier, Department of Economics.

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