IDEAS home Printed from https://ideas.repec.org/p/spa/wpaper/2022wpecon08.html
   My bibliography  Save this paper

What Drives Religiosity in America? Evidence from an Empirical Hotelling Model of Church Competition

Author

Listed:
  • Raphael Corbi
  • Fabio Miessi Sanches

Abstract

We develop and estimate a Hotelling model of religious competition that allows us to study how churches ideological views are built depending on both societal and their own ideological preferences as well as strategic interactions between churches. Demand for religion is a function of the distance between individuals` ideology and the ideological type of each church. We show that churches ideological types can be identified using the structure of the demand model. We find that individuals choose churches that have ideological types close to their own ideological types. We also document that religious groups are overwhelmingly on the conservative side of the spectrum as they systematically deviate from profit maximization. Their ideological positioning is driven mainly by clergy intrinsic preferences (supply) as opposed to society ideological views (demand). Our counterfactuals indicate that the recent societal shift to the left in terms of political views and attitudes towards sexual norms is able to explain a substantial part of American religiosity trends observed in the last decades.

Suggested Citation

  • Raphael Corbi & Fabio Miessi Sanches, 2022. "What Drives Religiosity in America? Evidence from an Empirical Hotelling Model of Church Competition," Working Papers, Department of Economics 2022_08, University of São Paulo (FEA-USP).
    • Handle: RePEc:spa:wpaper:2022wpecon08
    as

    Download full text from publisher

    File URL: http://www.repec.eae.fea.usp.br/documentos/Corbi_Miessi_08WP.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sascha O. Becker & Ludger Woessmann, 2013. "Not the Opium of the People: Income and Secularization in a Panel of Prussian Counties," American Economic Review, American Economic Association, vol. 103(3), pages 539-544, May.
    2. Robert J. Barro & Rachel M. McCleary, 2005. "Which Countries Have State Religions?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(4), pages 1331-1370.
    3. Daniel M. Hungerman & Mark Ottoni-Wilhelm, 2021. "Impure Impact Giving: Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 129(5), pages 1553-1614.
    4. Iannaccone, Laurence R & Finke, Roger & Stark, Rodney, 1997. "Deregulating Religion: The Economics of Church and State," Economic Inquiry, Western Economic Association International, vol. 35(2), pages 350-364, April.
    5. Edward L. Glaeser & Bruce I. Sacerdote, 2008. "Education and Religion," Journal of Human Capital, University of Chicago Press, vol. 2(2), pages 188-215.
    6. Jeanet Sinding Bentzen, 2019. "Acts of God? Religiosity and Natural Disasters Across Subnational World Districts," The Economic Journal, Royal Economic Society, vol. 129(622), pages 2295-2321.
    7. Giuliano, Paola & Tabellini, Marco, 2020. "The Seeds of Ideology: Historical Immigration and Political Preferences in the United States," CEPR Discussion Papers 14784, C.E.P.R. Discussion Papers.
    8. Emmanuelle Auriol & Julie Lassébie & Amma Panin & Eva Raiber & Paul Seabright, 2020. "God Insures those Who Pay? Formal Insurance and Religious Offerings in Ghana," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(4), pages 1799-1848.
    9. Rachel M. McCleary & Robert J. Barro, 2006. "Religion and Economy," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 49-72, Spring.
    10. Samuel Bazzi & Martin Fiszbein & Mesay Gebresilasse, 2020. "Frontier Culture: The Roots and Persistence of “Rugged Individualism” in the United States," Econometrica, Econometric Society, vol. 88(6), pages 2329-2368, November.
    11. Daniel L. Chen, 2010. "Club Goods and Group Identity: Evidence from Islamic Resurgence during the Indonesian Financial Crisis," Journal of Political Economy, University of Chicago Press, vol. 118(2), pages 300-354, April.
    12. Philipp Ager & Antonio Ciccone, 2018. "Agricultural Risk and the Spread of Religious Communities," Journal of the European Economic Association, European Economic Association, vol. 16(4), pages 1021-1068.
    13. Sriya Iyer, 2016. "The New Economics of Religion," Journal of Economic Literature, American Economic Association, vol. 54(2), pages 395-441, June.
    14. Jonathan Gruber & Daniel M. Hungerman, 2008. "The Church Versus the Mall: What Happens When Religion Faces Increased Secular Competition?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(2), pages 831-862.
    15. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-890, July.
    16. Ben Gaskins & Matt Golder & David A. Siegel, 2013. "Religious Participation and Economic Conservatism," American Journal of Political Science, John Wiley & Sons, vol. 57(4), pages 823-840, October.
    17. Matthew Gentzkow & Jesse M. Shapiro, 2010. "What Drives Media Slant? Evidence From U.S. Daily Newspapers," Econometrica, Econometric Society, vol. 78(1), pages 35-71, January.
    18. Pedro Pita Barros & Nuno Garoupa, 2002. "An Economic Theory Of Church Strictness," Economic Journal, Royal Economic Society, vol. 112(481), pages 559-576, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Raphael Corbi & Fabio Miessi Sanches, 2022. "Church Competition, Religious Subsidies and the Rise of Evangelicalism: a Dynamic Structural Analysis," Working Papers, Department of Economics 2022_09, University of São Paulo (FEA-USP).
    2. Ferrara, Andreas & Testa, Patrick A., 2020. "Resource Blessing? Oil, Risk, and Religious Communities as Social Insurance in the U.S. South," CAGE Online Working Paper Series 513, Competitive Advantage in the Global Economy (CAGE).
    3. Francisco Costa & Angelo Marcantonio & Rudi Rocha, 2023. "Stop Suffering! Economic Downturns and Pentecostal Upsurge," Journal of the European Economic Association, European Economic Association, vol. 21(1), pages 215-250.
    4. Arold, W. Benjamin & Woessmann, Ludger & Zierow, Larissa, 2022. "Can Schools Change Religious Attitudes? Evidence from German State Reforms of Compulsory Religious Education," IZA Discussion Papers 14989, Institute of Labor Economics (IZA).
    5. Bentzen, Jeanet & Sperling, Lena, 2020. "God Politics," CEPR Discussion Papers 14380, C.E.P.R. Discussion Papers.
    6. Samuel Bazzi & Gabriel Koehler-Derrick & Benjamin Marx, 2020. "The Institutional Foundations of Religious Politics: Evidence from Indonesia [“The Classical Islamic Law of Waqf: A Concise Introduction”]," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(2), pages 845-911.
    7. repec:hal:wpspec:info:hdl:2441/68bdjcjoob8kh8nu5vcmetkbf3 is not listed on IDEAS
    8. Emmanuelle Auriol & Julie Lassébie & Amma Panin & Eva Raiber & Paul Seabright, 2020. "God Insures those Who Pay? Formal Insurance and Religious Offerings in Ghana," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(4), pages 1799-1848.
    9. repec:hal:spmain:info:hdl:2441/71lh5oncqk84tbb1d1a8gujtq6 is not listed on IDEAS
    10. repec:hal:spmain:info:hdl:2441/68bdjcjoob8kh8nu5vcmetkbf3 is not listed on IDEAS
    11. Mavisakalyan, Astghik & Tarverdi, Yashar & Weber, Clas, 2020. "Paradise Postponed: Future Tense and Religiosity," GLO Discussion Paper Series 500, Global Labor Organization (GLO).
    12. Iyer, Sriya & Cavalcanti, Tiago & Rauh, Christopher & Roerig, Christian & ,, 2022. "A City of God: Afterlife Beliefs and Job Support in Brazil," CEPR Discussion Papers 17719, C.E.P.R. Discussion Papers.
    13. Shai, Ori, 2022. "Does armed conflict increase individuals’ religiosity as a means for coping with the adverse psychological effects of wars?," Social Science & Medicine, Elsevier, vol. 296(C).
    14. Zhu, Chen & Shen, Jim Huangnan & Lee, Chien-Chiang & Liu, Shouying, 2022. "Does religion belief matter to self-employment of rural elderly? Evidence from China," Journal of Asian Economics, Elsevier, vol. 83(C).
    15. Panin, Amma, 2021. "Four reasons why analysis of economic policy and religion go hand-in-hand in sub-Saharan Africa," PEGNet Policy Briefs 23/2020, PEGNet - Poverty Reduction, Equity and Growth Network, Kiel Institute for the World Economy (IfW Kiel).
    16. Voigt, Stefan, 2022. "Determinant of Social Norms," ILE Working Paper Series 58, University of Hamburg, Institute of Law and Economics.
    17. Bahal, Girish & Iyer, Sriya & Shastry, Kishen & Shrivastava, Anand, 2023. "Religion, Covid-19 and mental health," European Economic Review, Elsevier, vol. 160(C).
    18. Roland Bénabou & Davide Ticchi & Andrea Vindigni, 2022. "Forbidden Fruits: The Political Economy of Science, Religion, and Growth [Economic Backwardness in Political Perspective]," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(4), pages 1785-1832.
    19. Oeindrila Dube & Joshua E. Blumenstock & Michael Callen & Michael J. Callen, 2022. "Measuring Religion from Behavior: Climate Shocks and Religious Adherence in Afghanistan," CESifo Working Paper Series 10114, CESifo.
    20. Becker, Sascha O. & Nagler, Markus & Woessmann, Ludger, 2014. "Education Promoted Secularization," IZA Discussion Papers 8016, Institute of Labor Economics (IZA).
    21. Sriya Iyer, 2016. "The New Economics of Religion," Journal of Economic Literature, American Economic Association, vol. 54(2), pages 395-441, June.
    22. Hasan, Iftekhar & Manfredonia, Stefano & Noth, Felix, 2020. "Cultural resilience and economic recovery: Evidence from Hurricane Katrina," IWH Discussion Papers 16/2020, Halle Institute for Economic Research (IWH).
    23. Hanson, Gordon H. & Xiang, Chong, 2013. "Exporting Christianity: Governance and doctrine in the globalization of US denominations," Journal of International Economics, Elsevier, vol. 91(2), pages 301-320.

    More about this item

    Keywords

    Religion; Ideology; Product Differentiation;
    All these keywords.

    JEL classification:

    • Z12 - Other Special Topics - - Cultural Economics - - - Religion
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • C57 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Econometrics of Games and Auctions
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spa:wpaper:2022wpecon08. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Pedro Garcia Duarte (email available below). General contact details of provider: https://edirc.repec.org/data/deuspbr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.