Entwicklung und Perspektive einer interdisziplinären Wissenschaft- Festschrift für Michael Adams-
Law and Economics of Religion: Regulation of the Market of Religion in Germany - Christian Eilinghoff
313 Law and Economics of Religion: Regulation of the Market of Religion in Germany Christian Eilinghoff1 Abstract In Germany the market of religion is strongly regulated. Ninety years ago the legis- lators created the regulatory foundations of the market of religion. Today suppliers of religion strive to obtain a special legal status, the "corporation of public law" which is associated with substantial advantages and attractive subsidies. This legal status can be regarded as a state certification of high quality religious services. But in spite of this regulatory intervention, classic market imperfections like barriers to entry/exit, low transparency, cartels, collusion and negative externalities are left un- touched by state authorities. Besides, supply of religion remains dull and participa- tion is low, especially in comparison to the USA. We analyse the market for religion in Germany and deduct recommendations on how to increase market efficiency by applying the standard economic toolbox. 1 The market of religion in Germany The foundations of the Staatskirchenrecht, the federal regulatory framework for churches, were laid in the 19th century in Prussia and adopted for Germany just after WW I. A revision of laws was made in the years after WW II when most regulations were integrated into the Grundgesetz, the German constitution. In these times, Germany had a population with a high degree of homogeneity. In the late 40s of the 20th century, Germany was split into Catholics and Protestants. There was virtually no foreign population and no religions other than Christianity and what was left...
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