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Competition and Civic Engagement in the Religious Marketplace

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  • Lynne Pepall
  • Daniel Richards
  • John Straub
  • Michael DeBartolo

Abstract

We develop a model of spatial competition to explain the high level of spending on social services that distinguishes American churches or faith-based organizations (FBOs). The model predicts that such spending, measured on a per member basis, rises as the equilibrium structure of the religious marketplace becomes more competitive. A simple test of the model using measures of a religious Herfindahl Index constructed by county and by year for panel data covering the years 1994 and 2000 confirms our analysis. As local FBO monopoly power grows, FBO spending on civic activities declines.

Suggested Citation

  • Lynne Pepall & Daniel Richards & John Straub & Michael DeBartolo, 2006. "Competition and Civic Engagement in the Religious Marketplace," Discussion Papers Series, Department of Economics, Tufts University 0603, Department of Economics, Tufts University.
    • Handle: RePEc:tuf:tuftec:0603
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    References listed on IDEAS

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    Cited by:

    1. Gilbert E. Metcalf, 2006. "Value-Added Tax," Discussion Papers Series, Department of Economics, Tufts University 0608, Department of Economics, Tufts University.
    2. Robert Mochrie & John Sawkins & Alexander Naumov, 2008. "Competition and Participation in Religious Markets: Evidence from Victorian Scotland," Review of Social Economy, Taylor & Francis Journals, vol. 66(4), pages 437-467.
    3. Michael DeBartolo, 2009. "Does Religious Pluralism Play a Role in Fostering Civic Engagement?," The American Economist, Sage Publications, vol. 54(2), pages 61-71, October.

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