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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.

Suggested Citation

  • Opfinger, Matthias, 2011. "Religious Market Theory vs. Secularization: The Role of Religious Diversity Revisited," Hannover Economic Papers (HEP) dp-475, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
  • Handle: RePEc:han:dpaper:dp-475
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    File URL: http://diskussionspapiere.wiwi.uni-hannover.de/pdf_bib/dp-475.pdf
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    Cited by:

    1. Erich Gundlach & Matthias Opfinger, 2013. "Special Issue. Guest Editor: Zhihao Yu," Review of Development Economics, Wiley Blackwell, vol. 17(3), pages 523-539, August.
    2. Martin Paldam & Erich Gundlach, 2013. "The religious transition. A long-run perspective," Public Choice, Springer, vol. 156(1), pages 105-123, July.
    3. Kenneth Harttgen & Matthias Opfinger, 2014. "National Identity and Religious Diversity," Kyklos, Wiley Blackwell, vol. 67(3), pages 346-367, August.
    4. 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).

    More about this item

    Keywords

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

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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