1 Denominational Schism: An Economic Perspective Mehmet Karacuka Ege University Department of Economics 35100, Bornova-Izmir, Turkey mehmet.karacuka@ege.edu.tr Martin Leroch  University of Hamburg Institute of SocioEconomics von-Melle-Park 5, 20146 Hamburg, Germany leroch@econ.uni-hamburg.de December 20, 2005  A previous version of this paper has been presented at the Adam Smith Seminar in Hamburg. We would like to thank the participants for valuable comments and an insightful discussion, especially Christian Martin, Daniel Friedrich, Jörg Gröndahl, Manfred Holler, Matthew Braham and Stefan Napel. Jörg Gröndahl was furthermore kind enough to read through this version. Any remaining errors are ours.