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Was Adam Smith Right About Religious Competition?

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  • Peter J. Boettke
  • Joshua C. Hall
  • Kathleen M. Sheehan

Abstract

Adam Smith famously argued that increased competition in religion would result in more religious tolerance and that the benefits of competition in the marketplace would also be seen in religious instruction when many religious sects are tolerated. We use a cross-section of a maximum of 167 countries to explore whether increased religious competition results in less governmental regulation of religion and less governmental favoritism of religion. Our measure of religious regulation and favoritism comes from the Association of Religion Data Archives. Our empirical analysis also explores the influence of economic and political factors, including the size of the economy, openness of trade, legal origins, education, the amount of checks and balances on the government, and the role of democracy.

Suggested Citation

  • Peter J. Boettke & Joshua C. Hall & Kathleen M. Sheehan, 2020. "Was Adam Smith Right About Religious Competition?," Forum for Social Economics, Taylor & Francis Journals, vol. 49(4), pages 392-401, October.
    • Handle: RePEc:taf:fosoec:v:49:y:2020:i:4:p:392-401
    DOI: 10.1080/07360932.2015.1133440
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    References listed on IDEAS

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    1. Gary M. Anderson and Robert U. Tollison, 1992. "Morality and Monopoly: The Constitutional Political Economy of Religious Rules," Cato Journal, Cato Journal, Cato Institute, vol. 12(2), pages 373-392, Fall.
    2. Keefer, Philip & Stasavage, David, 2003. "The Limits of Delegation: Veto Players, Central Bank Independence, and the Credibility of Monetary Policy," American Political Science Review, Cambridge University Press, vol. 97(3), pages 407-423, August.
    3. Laurence R. Iannaccone, 1991. "The Consequences of Religious Market Structure," Rationality and Society, , vol. 3(2), pages 156-177, April.
    4. Anderson, Gary M, 1988. "Mr. Smith and the Preachers: The Economics of Religion in the Wealth of Nations," Journal of Political Economy, University of Chicago Press, vol. 96(5), pages 1066-1088, October.
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    Cited by:

    1. Sriya Iyer, 2022. "Religion and Discrimination: A Review Essay of Persecution and Toleration: The Long Road to Religious Freedom," Journal of Economic Literature, American Economic Association, vol. 60(1), pages 256-278, March.

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    JEL classification:

    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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