Economics Of Religion

The economics of religion or, especially in sociology, religious economy applies socio-economic theory and methods to explain the religious behavioral patterns of individuals, groups or cultures and the social consequences of such behavior. An example of the first is Adam Smith's analysis of the effect of competition and government regulation (or support) for religious denominations on the quantity and quality of religious services.[1] An example of the second is Max Weber's thesis that the Protestant ethic promoted the rise of capitalism.[2]

The field applies rational choice theory to the theory of religion such that supply and demand are used to model the development and success of organized religions.[3] Major proponents of the theory include William Sims Bainbridge, Roger Finke, Laurence Iannaccone, Rodney Stark and R. Stephen Warner.[4]

Religious economy may also refer to religious persons and organizations interacting within a market framework of competing groups and ideologies.[3] An economy makes it possible for religious suppliers to meet the demands of different religious consumers.[5] By offering an array of religions and religious products, a competitive religious economy stimulates such activity in a market-type setting.[5]

Religious (or theological) economics is a related subject sometimes overlapping or conflated with the economics of religion. It uses religious principles to evaluate economic perspectives or vice versa.[6] Another smaller literature considers such practical economic concerns as church growth and efficient resource use.[7]

Recent research on the subject has expanded on various fronts.[8] These include:

• religious services as consumer goods[9]

• religious organizations as firms[10]

• religious benefits, costs, and markets[11]

• economic analysis of religious doctrines and incentives[12]

• club models of religion[13]

• religious militancy in various forms[14]

• religion as social capital and in cultural...