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Two Sides of a Medal: The Changing Relationship between Religious Diversity and Religiosity

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  • Matthias Opfinger

Abstract

Religious 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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File URL: http://www.uni-trier.de/fileadmin/fb4/prof/VWL/EWF/Research_Papers/2013-06.pdf
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Bibliographic Info

Paper provided by University of Trier, Department of Economics in its series Research Papers in Economics with number 2013-06.

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Length: 20 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:trr:wpaper:201306

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Keywords: Supply side; Demand side; interaction; attenuating effects;

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References

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  1. Harttgen, Kenneth & Opfinger, Matthias, 2013. "National Identity and Religious Diversity," MPRA Paper 50151, University Library of Munich, Germany.
  2. Jonathan Gruber, 2005. "Religious Market Structure, Religious Participation, and Outcomes: Is Religion Good for You?," NBER Working Papers 11377, National Bureau of Economic Research, Inc.
  3. McCleary, Rachel & Barro, Robert, 2002. "Religion and Political Economy in an International Panel," Scholarly Articles 3221170, Harvard University Department of Economics.
  4. Gruber Jonathan H, 2005. "Religious Market Structure, Religious Participation, and Outcomes: Is Religion Good for You?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-32, September.
  5. Rachel M. McCleary & Robert J. Barro, 2006. "Religion and Economy," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 49-72, Spring.
  6. Robert J. Barro & Jong-Wha Lee, 2010. "A New Data Set of Educational Attainment in the World, 1950–2010," NBER Working Papers 15902, National Bureau of Economic Research, Inc.
  7. Gordon H. Hanson & Chong Xiang, 2011. "Exporting Christianity: Governance and Doctrine in the Globalization of US Denominations," NBER Working Papers 16964, National Bureau of Economic Research, Inc.
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Cited by:
  1. Matthias Opfinger, 2014. "‘United in Diversity’---Does Social Diversity Increase Subjective?," Research Papers in Economics 2014-10, University of Trier, Department of Economics.

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