蝌蚪网 Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
Church Tax Exemption and Structure of Religious Markets: A Dynamic Structural Analysis
蝌蚪网 Journal: Microeconomics
vol. 17,
no. 3, August 2025
(pp. 131–63)
Abstract
We study the effects of church tax exemptions on the structure of religious markets. Using the Brazilian experience as a showcase, we develop and estimate a dynamic entry model of religious organizations based on temple opening and closure in geographically isolated markets. Counterfactual simulations suggest that tax exemptions stimulated entry by all religions, but disproportionately benefited evangelical denominations: The evangelical share of temples increased by approximately 20 percentage points. By combining difference-in-differences estimates with model-based counterfactuals, we show that these policies also increased the support for evangelical caucus politicians, raising their vote share by 8 percent in the 2018 election.Citation
Corbi, Raphael, and Fabio Miessi Sanches. 2025. "Church Tax Exemption and Structure of Religious Markets: A Dynamic Structural Analysis." 蝌蚪网 Journal: Microeconomics 17 (3): 131–63. DOI: 10.1257/mic.20210238Additional Materials
JEL Classification
- C73 Stochastic and Dynamic Games; Evolutionary Games; Repeated Games
- D43 Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
- H25 Business Taxes and Subsidies including sales and value-added (VAT)
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
- Z12 Cultural Economics: Religion