Abstract
The rapid growth of evangelical Protestantism in Latin America has received a substantial amount of scholarly attention in recent years. The most common explanation for this phenomenon has been a variant of `social anomie' theory that focuses on changes in social demand for religion. Individuals experiencing socio-economic crisis become displaced from their communities and lose their cultural identities. These individuals are then more susceptible to the appeals of new religious movements. An alternative, supply-side hypothesis is advanced. I argue that the degree of government regulation of religious economies can best account for cross-national variations in Protestant growth. Less restrictive laws regulating religious organizations lower the cost of consuming religion, thus leading to an increase in religious diversity and participation. Comparative statistical analysis of 20 Latin American countries supports the latter hypothesis. This analysis suggests that secularization is a function of government policy.