Two Sides of a Medal: The Changing Relationship between Religious Diversity and Religiosity
AbstractReligious Market Theory assigns basic market principles to the market for religion. The derived supply side model proposes that religiosity is higher on a competitive market, characterized by high religious diversity. Churches will provide higher quality goods compared to monopolistic churches. The demand side model, originating from the Secularization Hypothesis, suggests that the establishment of new churches casts doubt on the existing religion, which reduces overall religiosity. I find a negative linear relationship between religious diversity and religiosity which supports the demand side model. However, high levels of income, education, and democracy mitigate this effect. The relationship becomes positive in the most developed countries. The demand side model seems to dominate in less developed countries, while the supply side model better describes the market for religion after Secularization has occurred.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 50152.
Date of creation: Sep 2013
Date of revision:
Supply side; Demand side; interaction; attenuating effects;
Other versions of this item:
- Matthias Opfinger, 2013. "Two Sides of a Medal: The Changing Relationship between Religious Diversity and Religiosity," Research Papers in Economics 2013-06, University of Trier, Department of Economics.
- D4 - Microeconomics - - Market Structure and Pricing
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- Z12 - Other Special Topics - - Cultural Economics - - - Religion
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-10-02 (All new papers)
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