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The Effect of Religious Market Competition on Church Giving
Authors:Peter A Zaleski  Charles E Zech
Institution:Villanova University
Abstract:This paper contributes to the debate over the effects of religious pluralism on religosity. A key innovative feature of the paper is the use of voluntary contributions from members as a measure of religiosity. Using data from 177 congregations, and employing both the Herfindahl Index and market share as measures of religious market competition, a two-stage least squares estimation technique shows that Protestants give more when their congregation is faced with substantial competition, while Catholics tend to contribute more when they represent a minority church in a heavily concentrated market. This outcome is explained by arguing that churches with more competition react by providing a more satisfactory product and do a better job of filling niches in the religious marketplace.
Keywords:Religious market  religious contributions  religious economy  religious competition  free rider  Herfindahl Index
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