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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.

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Bibliographic Info

Paper provided by Department of Economics, Tufts University in its series Discussion Papers Series, Department of Economics, Tufts University with number 0603.

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Date of creation: 2006
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Handle: RePEc:tuf:tuftec:0603

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  1. Jonathan Gruber & Daniel M. Hungerman, 2005. "Faith-Based Charity and Crowd Out during the Great Depression," NBER Working Papers 11332, National Bureau of Economic Research, Inc.
  2. Lynne M. Pepall, 2002. "The Simple Economics of Brand Stretching," The Journal of Business, University of Chicago Press, vol. 75(3), pages 535-552, July.
  3. Hungerman, Daniel M., 2005. "Are church and state substitutes? Evidence from the 1996 welfare reform," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2245-2267, December.
  4. Rajeev Dehejia & Thomas DeLeire & Erzo F.P. Luttmer, 2005. "Insuring Consumption and Happiness Through Religious Organizations," NBER Working Papers 11576, National Bureau of Economic Research, Inc.
  5. Edward L. Glaeser & David Laibson & Bruce Sacerdote, 2002. "An Economic Approach to Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 437-458, November.
  6. James Andreoni & A. Abigail Payne, 2003. "Do Government Grants to Private Charities Crowd Out Giving or Fund-raising?," American Economic Review, American Economic Association, vol. 93(3), pages 792-812, June.
  7. 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.
  8. 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.
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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 I. Mochrie & John W. Sawkins & Alexander Naumov, 2006. "Competition and Participation in Religious Markets: Evidence from Victorian Scotland," Working Papers E01, Department of Economics, School of Management and Languages, Heriot Watt University.

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