Religiosity
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The '''economics of religion''' concerns both the application of the techniques of [[economics]] to the study of religion and the relationship between [[Economic behavior|economic]] and [[religious behaviour]]s.<ref name="Iannaccone">{{Cite journal |last=Iannaccone |first=Laurence R. |author-link=Laurence R. Iannaccone |date= 1998|title=Introduction to the Economics of Religion|journal=Journal of Economic Literature |volume=36|issue=3|pages=[https://edisciplinas.usp.br/pluginfile.php/262957/mod_resource/content/2/Iannaccone%20-%20Economics%20of%20Religion.pdf pp.1465–1495.]}}</ref><ref>{{cite book |last1= McCleary |first1= Rachel M. |title= The Oxford Handbook of the Economics of Religion |date= 2011 |publisher= Oxford University Press |isbn= 9780199781287 |url=https://books.google.com/books?id=TRjB0DjEyIkC&q=oxford+handbook+of+economics+of+religion |language= en}}</ref> Contemporary writers on the subject trace it back to [[Adam Smith]] (1776).<ref>• {{Cite journal |last=Iannaccone |first=Laurence R. |author-link=Laurence R. Iannaccone |date= 1998|title=Introduction to the Economics of Religion|journal=Journal of Economic Literature |volume=36 |issue=3 |pages=[https://edisciplinas.usp.br/pluginfile.php/262957/mod_resource/content/2/Iannaccone%20-%20Economics%20of%20Religion.pdf 1465–1495.]}}<br /> • Anderson, Gary M. (1988). "Mr. Smith and the Preachers: The Economics of Religion in the Wealth of Nations," ''Journal of Political Economy'', '''96'''(5), [http://www.jstor.org/stable/1837247 pp. 1066–1088.]</ref> |
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[[Image:Religion economy.png|thumb|550px|The average annual income of countries correlates negatively [[Importance of religion by country|with national levels of religiosity]].<ref name=WIN-Gallup>{{cite web|last=WIN-Gallup|title=Global Index of religion and atheism.|url=http://redcresearch.ie/wp-content/uploads/2012/08/RED-C-press-release-Religion-and-Atheism-25-7-12.pdf| |
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Empirical work examines the causal influence of religion in [[microeconomics]] to explain individual behaviour<ref>{{cite book |url= https://books.google.com/books?id=913O9xcpBB4C&q=starke+and+finke |title= Acts of Faith: Explaining the Human Side of Religion|isbn= 9780520222021|last1= Stark|first1= Rodney|last2= Finke|first2= Roger|date= August 2000|publisher= University of California Press}}</ref> and in the [[macroeconomic]] determinants of [[economic growth]].<ref>{{cite journal |last1= Barro |first1= Robert J. |last2= McCleary |first2= Rachel M. |title= Religion and Economic Growth across Countries |journal= American Sociological Review |date= 2003 |volume= 68 |issue= 5 |pages= 760–781 |doi= 10.2307/1519761 |jstor= 1519761|url= http://nrs.harvard.edu/urn-3:HUL.InstRepos:3708464 }}</ref> '''Religious economics''' (or '''theological economics''') is a related subject sometimes{{quantify|date=October 2020}} overlapping or conflated with the economics of religion.<ref>For example, the [http://www.acton.org/pub/journal-markets-morality ''Journal of Markets & Morality''] of the [[Acton Institute for the Study of Religion and Liberty]] and [http://www.gordon.edu/ace/ACEFandE.html ''Faith & Economics''] of the Association of Christian Economists.<br /> |
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The '''economics of religion''' applies [[social economics|socio-]] [[Economics|economic]] theory and [[economic methodology|methods]] to explain the [[religious behaviour]] patterns of individuals, groups or [[cultural economics|cultures]] and the social consequences of such behavior. An example of the first is [[Adam Smith]]'s analysis of the effect of [[competition (economics)|competition]] and government regulation (or support) for religious denominations on the quantity and quality of religious services.<ref>• Adam Smith, 1776 1904. ''[[Wealth of Nations]]'', [http://www.econlib.org/library/Smith/smWN20.html#B.V,%20Ch.1,%20Of%20the%20Expences%20of%20the%20Sovereign%20or%20Commonwealth Book V, Chapter I.] |
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• Paul Oslington, ed., 2003. ''Economics and Religion'', Elgar, v. 2, part II, Economics of Religion, scrollable [http://www.ecampus.com/book/9781840648492 table of contents], 10 of 41 papers, 1939–2002.<br /> |
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• Patrick J. Welch and J.J. Mueller, 2001. "The Relationship of Religion to Economics," ''Review of Social Economy'', 59(2). pp. 185–202. [http://www3.baylor.edu/2002conference/abstracts/Welch,+Patrick+abstract.pdf Abstract.] {{Webarchive|url=https://web.archive.org/web/20060915193451/http://www3.baylor.edu/2002conference/abstracts/Welch%2C%20Patrick%20abstract.pdf |date=2006-09-15 }}<br /> |
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• Paul Oslington, 2000. "A Theological Economics," ''International Journal of Social Economics'', 27(1), pp.[http://www.essaybay.com/articles/theology4.pdf \ 32–44.]<br /> |
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• Paul Oslington, ed., 2003. ''Economics and Religion'', v. 1, Historical Relationships, table of contents, pp. v–vi with links via upper [https://books.google.com/books?id=PDgxjACbK8AC&pg=PP10 right-arrow] to Introduction and first 11 of 17 papers, 1939–2002.<br /> |
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• Paul Oslington, ed., 2003. ''Economics and Religion'', v. 2, part I, Religious Economics and its Critics, scrollable [http://www.ecampus.com/book/9781840648492 table of contents], 14 papers, 1939–2002.<br /> |
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• A.M.C. Waterman, 2002. "Economics as Theology: Adam Smith's Wealth of Nations," ''Southern Economic Journal'', 68(4), p [https://www.jstor.org/pss/1061499 pp. 907]–921. Reprinted in Paul Oslington, ed., 2003. Economics and Religion, v. 1, pp. [https://books.google.com/books?id=PDgxjACbK8AC&pg=PA321 321]–[https://books.google.com/books?id=PDgxjACbK8AC&pg=PA336 336.]<br /> |
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• [[Thomas Nixon Carver]], 1908. "The Economic Basis of the Problem of Evil," ''Harvard Theological Review'', 1(1), pp. [https://books.google.com/books?id=lP0LAAAAIAAJ&dq=bl&pg=PA97 97]–[https://books.google.com/books?id=lP0LAAAAIAAJ&dq=bl&pg=PA111 111.]<br /> |
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• _____, 1912. ''The Religion Worth Having''. Chapter [https://books.google.com/books?id=79AjG-BxewkC&q=%22 links.]<br /> • Mahmoud A. El-Gamal, 2006. ''Islamic Finance: Law, Economics, and Practice''. Cambridge. [https://web.archive.org/web/20060812051833/http://www.cambridge.org/us/catalogue/catalogue.asp?isbn=0521864143 Description and chapter titles.]</ref> |
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==History== |
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<br /> • Gary M. Anderson, 1988. "Mr. Smith and the Preachers: The Economics of Religion in the ''Wealth of Nations''," ''Journal of Political Economy'', 96(5), p [http://www.jstor.org/pss/1837247 p. 1066]-1088. Reprinted in Paul Oslington, ed., 2003. ''Economics and Religion'', Elgar, v. 1, pp. [http://books.google.com/books?hl=en&lr=&id=PDgxjACbK8AC&oi=fnd&pg=PA336&ots=jUcMdJuPuf&sig=kGPnD-pUaO7URku_AHU69laIk5Y#v=onepage&q=&f=fa 336]-[http://books.google.com/books?hl=en&lr=&id=PDgxjACbK8AC&oi=fnd&pg=PA358&ots=jUcMdJuPuf&sig=kGPnD-pUaO7URku_AHU69laIk5Y#v=onepage&q=&f=true 358.]</ref> An example of the second is [[Max Weber]]'s thesis that the [[Max Weber#The Protestant Ethic and the Spirit of Capitalism|Protestant ethic]] promoted the rise of [[capitalism]].<ref>• Max Weber, [1904] 1920. ''[[The Protestant Ethic and the Spirit of Capitalism]]''.<br /> • Kurt Samuelsson, [1957] 1964. ''Religion and Economic Action: A Critique of Max Weber''. 1-page chapter-preview [http://www.questia.com/PM.qst?a=o&d=691417 links.]<br /> • Jacques Delacroix and François Nielsen, 2001. "The Beloved Myth: Protestantism and the Rise of Industrial Capitalism in Nineteenth-Century Europe," ''Social Forces'', 80(2), pp. [http://www.unc.edu/~nielsen/special/s7/sample_minion_2001.pdf 509-553] (press '''+''').</ref> |
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[[Adam Smith]] laid a foundation for economic analysis for religion in ''[[The Wealth of Nations]]'' (1776), stating that religious organisations are subject to [[market forces]], [[incentive]] and [[competition]] problems like any other [[sectors of the economy|sector of the economy]].<ref>{{cite book |last1= Smith |first1= Adam |title= The Wealth of Nations |date= 1776 |publisher= Methuen & Co |location=London |page= 749}}</ref>{{request quotation|date=October 2020}}<ref> |
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{{cite book |
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| last1 = Smith |
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| first1 = Adam |
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| author-link1 = Adam Smith |
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| chapter = Book V: Of the Revenue of the Sovereign or Commonwealth; Chapter 1: Of the Expences of the Sovereign or Commonwealth |
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| title = An Inquiry Into the Nature and Causes of the Wealth of Nations |
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| year = 1776 |
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| url = https://books.google.com/books?id=lYNaAAAAYAAJ |
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| volume = 2 |
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| location = London |
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| publisher = Whitestone |
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| publication-date = 1776 |
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| pages = 406–407 |
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| access-date = 10 October 2020 |
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| quote = The revenue of every established church [...] is a branch [...] of the general revenues of the state, which is thus diverted to purpose very different from the defence of the state. The tythe, for example, is a real land-tax [...]. The more of this fund that is given to the church, the less, it is evident, can be spared to the state. [...] all other things being supposed equal, the richer the church, the poorer must necessarily be, either the sovereign on the one hand, or the people on the other [...]. |
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}} |
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</ref> [[Max Weber]] later identified a relationship between religion and economic behaviour, attributing in 1905 the modern advent of [[capitalism]] to the [[Protestant reformation]].<ref>{{cite book |last1= Weber |first1= Max |title= The Protestant Ethic and the Spirit of Capitalism | orig-year = 1905 |date= 2012 |publisher= Courier Corporation |isbn= 9780486122373 |url= https://books.google.com/books?id=ez7CAgAAQBAJ&q=weber+spirit+of++capitalism |language= en}}</ref> |
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==Religion and individual behaviour== |
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Religious (or theological) economics is a related subject sometimes overlapping or conflated with the economics of religion. It uses religious principles to evaluate economic perspectives or vice versa.<ref>For example, the [http://www.acton.org/pub/journal-markets-morality ''Journal of Markets & Morality''] of the Acton Institute for the Study of Religion and Liberty and [http://www.gordon.edu/ace/ACEFandE.html ''Faith & Economics''] of the Association of Christian Economists.<br /> • Paul Oslington, ed., 2003. ''Economics and Religion'', Elgar, v. 2, part II, Economics of Religion, scrollable [http://www.ecampus.com/book/9781840648492 table of contents], 10 of 41 papers, 1939-2002.<br /> • Patrick J. Welch and J.J. Mueller, 2001. "The Relationship of Religion to Economics," ''Review of Social Economy'', 59(2). pp. 185-202. [https://web.archive.org/web/20030327010812/http://www3.baylor.edu/2002conference/abstracts/Welch,+Patrick+abstract.pdf Abstract.]<br /> • Paul Oslington, 2000. "A Theological Economics," ''International Journal of Social Economics'', 27(1), pp.[http://www.essaybay.com/articles/theology4.pdf \ 32-44.]<br /> • Paul Oslington, ed., 2003. ''Economics and Religion'', v. 1, Historical Relationships, table of contents, pp. v-vi with links via upper [http://books.google.com/books?id=PDgxjACbK8AC&pg=PP10&lpg=PP7&ots=jUcI7NuNsm&lr= right-arrow] to Introduction and first 11 of 17 papers, 1939-2002.<br /> • Paul Oslington, ed., 2003. ''Economics and Religion'', v. 2, part I, Religious Economics and its Critics, scrollable [http://www.ecampus.com/book/9781840648492 table of contents], 14 papers, 1939-2002.<br /> • A.M.C. Waterman, 2002. "Economics as Theology: Adam Smith's Wealth of Nations," ''Southern Economic Journal'', 68(4), p [http://www.jstor.org/pss/1061499 p. 907]-921. Reprinted in Paul Oslington, ed., 2003. Economics and Religion, v. 1, pp. [http://books.google.com/books?hl=en&lr=&id=PDgxjACbK8AC&oi=fnd&pg=PA321&ots=jUcMdJuPuf&sig=kGPnD-pUaO7URku_AHU69laIk5Y#v=onepage&q=&f=true 321]-[http://books.google.com/books?hl=en&lr=&id=PDgxjACbK8AC&oi=fnd&pg=PA336&ots=jUcMdJuPuf&sig=kGPnD-pUaO7URku_AHU69laIk5Y#v=onepage&q=&f=true 336.]<br /> • [[Thomas Nixon Carver]], 1908. "The Economic Basis of the Problem of Evil," ''Harvard Theological Review'', 1(1), pp. [http://books.google.com/books?id=lP0LAAAAIAAJ&pg=PA97&lpg=PA97&dq=bl&ots=d_S53v307b&sig=SdakU_iXyhn7XT-d-zbNYFUSB_Y&hl=en&ei=TGu6ScDVCuH8tgfa7eTiDw&sa=X&oi=book_result&resnum=2&ct=result 97]-[http://books.google.com/books?id=lP0LAAAAIAAJ&pg=PA111&lpg=PA111&dq=bl&ots=d_S53v307b&sig=SdakU_iXyhn7XT-d-zbNYFUSB_Y&hl=en&ei=TGu6ScDVCuH8tgfa7eTiDw&sa=X&oi=book_result&resnum=2&ct=result 111.]<br /> • _____, 1912. ''The Religion Worth Having''. Chapter [http://books.google.com/books?id=79AjG-BxewkC&dq=%22&printsec=frontcover&source=bl&ots=_vvfCP6Bnc&sig=M7nJT7b7-eQeYGA_f51G_GGWbyY&hl=en&ei=uu23SeeBNJjAtgfOwvGzCQ&sa=X&oi=book_result&resnum=1&ct=result#PPP9,M1 links.]<br /> • Mahmoud A. El-Gamal, 2006. ''Islamic Finance: Law, Economics, and Practice''. Cambridge. [http://www.cambridge.org/us/catalogue/catalogue.asp?isbn=0521864143 Description and chapter titles.]</ref> |
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Research highlights the importance of [[Orthodoxy|religious orthodoxy]] on moral behaviours and versions of the [[Golden Rule]] “Do unto others as you would have others do unto you” are common to most major religions.<ref>{{cite book |last1=Batson |first1=Charles Daniel |last2=Schoenrade |first2=Patricia |last3=Ventis |first3=W. Larry |title=Religion and the Individual: A Social-Psychological Perspective |date=1993 |publisher=Oxford University Press |isbn=9780195062083 |url=https://books.google.com/books?id=L58jAAAAYAAJ&q=batson+1993+religion+and+morality |language=en}}</ref> Others argue it promotes cooperation and trust within culturally defined groups or [[Club good|clubs]].<ref name="Iannaccone"/> Studies compare the complementary effects of religious values such as charity, forgiveness, honesty and tolerance and religious social groups where membership instils favouritism or discrimination towards in or outgroup members.<ref>{{cite journal |title=Cooperation and the in-group-out-group bias: A field test on Israeli kibbutz members and city residents |journal=Journal of Economic Behavior & Organization |date=1 June 2006 |volume=60 |issue=2 |pages=147–163 |doi=10.1016/j.jebo.2004.07.007 |language=en |issn=0167-2681|last1=Ruffle |first1=Bradley J. |last2=Sosis |first2=Richard |citeseerx=10.1.1.740.7036 |s2cid=15402779 }}</ref> |
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===Believing=== |
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The believing channel of religion behaviours concerns costly effort concerned with divine reputation. Azzi and Ehrenberg (1975) propose individuals allocate time and money to secular and religious institutions to maximise utility in this life and the afterlife.<ref>{{cite journal |last1=Azzi |first1=Corry |last2=Ehrenberg |first2=Ronald |title=Household Allocation of Time and Church Attendance |journal=Journal of Political Economy |date=February 1975 |volume=83 |issue=1 |pages=27–56 |doi=10.1086/260305 |s2cid=153985044 |language=en |issn=0022-3808|url=http://digitalcommons.ilr.cornell.edu/articles/633 |hdl=1813/75631 |hdl-access=free }}</ref> The colonisation of religious minds by the morally concerned supernatural or “Big Gods”<ref>{{cite book |last1=Norenzayan |first1=Ara |title=Big Gods: How Religion Transformed Cooperation and Conflict |date=2013 |publisher=Princeton University Press |isbn=978-1400848324 |url=https://books.google.com/books?id=2VMtfYiQCXEC&q=big+gods |language=en}}</ref> diffused behaviours derived from moral instruction. |
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===Belonging=== |
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The belonging approach to religion considers the social notion of between and within religious groups. Iannaconne (1998) assigns religion as a '[[club good]]' from a [[rational choice]] perspective where costly rituals exclude [[Free-rider problem|free-riders]] from in-group benefits. Field experiments also evidence religious people are more trusting and cooperative with fellow religious adherents. Many experimental studies suggest group belonging has a greater influence on behaviour than belief orthodoxy.<ref>{{cite journal |last1=Hougland |first1=James G. |last2=Wood |first2=James R. |title=Control in Organizations and the Commitment of Members |journal=Social Forces |date=1980 |volume=59 |issue=1 |pages=85–105 |doi=10.2307/2577834 |jstor=2577834}}</ref> As Darwin (1874) among others argue, the promotion of cooperative in-group behaviours is not unique to religious networks.<ref>{{cite journal |last1=Becker |first1=Penny Edgell |last2=Dhingra |first2=Pawan H. |title=Religious Involvement and Volunteering: Implications for Civil Society |journal=Sociology of Religion |date=2001 |volume=62 |issue=3 |pages=315–335 |doi=10.2307/3712353 |jstor=3712353}}</ref> |
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==Experimental economics of religion== |
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Experimental methods can be applied to isolate the effect of religion on behaviour patterns and to distinguish between believing versus belonging channels. Experimental methods are useful in the economics of religion to standardise measurement and identify causal effect.<ref>{{cite journal |last1=Hoffmann |first1=Robert |title=The Experimental Economics of Religion |journal=Journal of Economic Surveys |date=January 2012 |volume=27 |issue=5 |pages=813–845 |doi=10.1111/j.1467-6419.2011.00716.x |language=en |issn=0950-0804|citeseerx=10.1.1.227.6634 |s2cid=145765803 }}</ref> Methods include looking at religion in various games – [[Prisoner's dilemma]], [[public goods game]], [[ultimatum game]], [[dictator game]] and [[Choice under uncertainty|parametric choice]]. Generally, as Hoffman's (2011) survey shows, few statistically significant results have been identified which commentators attribute to opposing positive versus negative effects between and within individuals.<ref>{{cite book |last1=Obadia |first1=Lionel |last2=Wood |first2=Donald C. |title=Economics of Religion: Anthropological Approaches |date=2011 |publisher=Emerald Group Publishing |isbn=9781780522296 |url=https://books.google.com/books?id=8KCmbdDlByMC&q=anthropological+approaches+to+religion |language=en}}</ref> |
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==Religion and economic growth== |
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⚫ | [[Image:Religion economy.png|thumb|550px|The average annual income of countries correlates negatively [[Importance of religion by country|with national levels of religiosity]].<ref name=WIN-Gallup>{{cite web|last=WIN-Gallup |title=Global Index of religion and atheism. |url=http://redcresearch.ie/wp-content/uploads/2012/08/RED-C-press-release-Religion-and-Atheism-25-7-12.pdf |access-date=21 October 2012 |url-status=dead |archive-url=https://web.archive.org/web/20121016062403/http://redcresearch.ie/wp-content/uploads/2012/08/RED-C-press-release-Religion-and-Atheism-25-7-12.pdf |archive-date=16 October 2012 }}</ref>]] |
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''Effects of religion on economic outcomes'' |
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Studies suggest there is a channel from religious behaviours to macroeconomic outcomes of economic growth, crime rates and institutional development.<ref>{{cite journal |title=People's opium? Religion and economic attitudes |journal=Journal of Monetary Economics |date=1 January 2003 |volume=50 |issue=1 |pages=225–282 |doi=10.1016/S0304-3932(02)00202-7 |language=en |issn=0304-3932|last1=Guiso |first1=Luigi |last2=Sapienza |first2=Paola |last3=Zingales |first3=Luigi |citeseerx=10.1.1.194.9800 |s2cid=157112771 }}</ref> Scholars hypothesise religion impacts economic outcomes through religious doctrines promoting thrift, work ethic, honesty and trust.<ref>{{cite journal |last1=Barro |first1=Robert J. |last2=McCleary |first2=Rachel M. |title=Religion and Economic Growth across Countries |journal=American Sociological Review |date=2003 |volume=68 |issue=5 |pages=760–781 |doi=10.2307/1519761 |jstor=1519761|url=http://nrs.harvard.edu/urn-3:HUL.InstRepos:3708464 }}</ref> These channels were described by [[Max Weber]] in his work [[The Protestant Ethic and the Spirit of Capitalism]]. Weber indicates that [[Protestantism|Protestant]] teachings were an important force behind the transition to modern day capitalism in Europe.<ref>Weber, M. (2002). The Protestant Ethic and the Spirit of Capitalism: and other writings. Penguin.</ref> Other studies highlight the effects of religion on [[human capital]] formation as the main mechanism behind the dependency. Human capital formation is driven by higher religious importance of literacy <ref name="Becker, S. O. 2009">Becker, S. O., & Woessmann, L. (2009). Was Weber wrong? A human capital theory of Protestant economic history. The quarterly journal of economics, 124(2), 531-596.</ref> |
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''Effects of economic outcomes on religion'' |
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Studies indicate a two-way interaction between economic growth and religion. [[Secularization]] theory predicts that economic development reduces religious participation.<ref>McCleary, R. M., & Barro, R. J. (2006). Religion and economy. Journal of Economic perspectives, 20(2), 49-72.</ref> The empirical evidence in favour of this relationship is mixed.<ref>Buser, T. (2015). The effect of income on religiousness. American Economic Journal: Applied Economics, 7(3), 178-195.</ref><ref>Becker, S. O., & Woessmann, L. (2013). Not the opium of the people: Income and secularization in a panel of Prussian counties. American Economic Review, 103(3), 539-544.</ref> |
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=== Historical aspects === |
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Religion can have long-lasting effects on a society and its economy. For instance, municipalities of Spain with a history of a stronger inquisitorial presence show lower economic performance and educational attainment today.<ref>{{Cite journal|last1=Drelichman|first1=Mauricio|last2=Vidal-Robert|first2=Jordi|last3=Voth|first3=Hans-Joachim|date=2021-08-17|title=The long-run effects of religious persecution: Evidence from the Spanish Inquisition|journal=Proceedings of the National Academy of Sciences|language=en|volume=118|issue=33|pages=e2022881118|doi=10.1073/pnas.2022881118|issn=0027-8424|pmid=34389666|pmc=8379970|doi-access=free }}</ref> Similarly, Protestantism in Germany has long affected education and thus economic performance. In 1816, school attendance was about 50% in catholic regions while it was about 66% in Protestant regions.<ref>{{Cite web|last=Wößmann|first=Ludger|date=2017-10-12|title=Sind Protestanten schlauer?|url=https://www.zeit.de/2017/42/martin-luther-lutherjahr-protestanten-reformation-bildung/|url-status=live|access-date=2021-08-17|website=Zeit.de|archive-url=https://web.archive.org/web/20171015232611/http://www.zeit.de/2017/42/martin-luther-lutherjahr-protestanten-reformation-bildung |archive-date=2017-10-15 }}</ref> Higher literacy rates of Protestants can be observed in the 1870s/1880s in Prussia. It can be caused by the fact, that Martin Luther favoured Christians reading the Bible by themselves <ref name="Becker, S. O. 2009"/> Elements of Protestant ethic described by [[Max Weber|Weber]] and economic prosperity may have emerged before the [[Reformation]]. In case of England, regions that were exposed to [[Cistercians|Cistercian monasteries]] experienced a faster productivity growth from the 13th century onwards. The cultural influence was persistent even after the monasteries were dissolved. Modern attitudes towards hard work are positively related with influence of the Cistercians in the region.<ref>Andersen, T. B., Bentzen, J., Dalgaard, C. J., & Sharp, P. (2017). Pre‐reformation roots of the protestant ethic. The Economic Journal, 127(604), 1756-1793.</ref> |
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===Criticisms=== |
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The correlation between religion and economic outcomes can be interpreted in two ways: (1) a feature intrinsic to religion which affects growth or (2) a feature correlated to religion but not religion itself which affects growth. Existing cross-country literature is criticised for inability to distinguish between the two explanations, a problem termed [[Endogeneity (econometrics)|endogeneity bias]]. Controlling for country [[fixed effects]] mitigates bias but more recent studies utilise field and natural experiments to identify the causal effect of religion.<ref>{{cite journal |last1=Iyer |first1=Sriya |title=The New Economics of Religion |journal=Journal of Economic Literature |date=June 2016 |volume=54 |issue=2 |pages=395–441 |url=https://www.repository.cam.ac.uk/bitstream/handle/1810/255321/cwpe1544.pdf?sequence=1&isAllowed=y|doi=10.1257/jel.54.2.395 |s2cid=38991072 }}</ref> Robustness of cross-country results to changes in specification of the statistical models is criticised in the literature.<ref>Durlauf, S. N., Kourtellos, A., & Tan, C. M. (2012). Is God in the details? A reexamination of the role of religion in economic growth. Journal of Applied Econometrics, 27(7), 1059-1075.</ref> |
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==See also== |
==See also== |
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* [[Christian views on poverty and wealth]] |
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* [[Buddhist economics]] |
* [[Buddhist economics]] |
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* [[ |
* [[Islamic economics]] |
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* [[Economic imperialism (economics)]] |
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* [[Institutional economics]] |
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* [[New institutional economics]] |
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* Pars pro toto principle |
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* [[Religion and business]] |
* [[Religion and business]] |
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* [[Sociology of religion]] |
* [[Sociology of religion]] |
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* [[Religious economy (disambiguation)|Religious economy]] |
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* [[Islamic economics in the world]] |
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* [[Religiosity and intelligence]] |
* [[Religiosity and intelligence]] |
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'''Books:''' |
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* ''[[Malaysia and the Club of Doom]]'' |
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==References== |
==References== |
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{{ |
{{Reflist|colwidth=30em}} |
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==External links== |
==External links== |
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⚫ | * [https://web.archive.org/web/20100605103050/http://www.religionomics.com/index.html Economics of Religion Gateway:] "What is the economic study of religion?" from the [https://web.archive.org/web/20100205101515/http://www.religionomics.com/asrec/index.html Association for the Study of Religion, Economics, and Culture.] |
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* [http://content.time.com/time/magazine/article/0,9171,1533448,00.html Does God Want You To Be Rich?] |
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⚫ | * [https://web.archive.org/web/20110726031920/http://www.ener-online.org/about.html European Network on the Economics of Religion] |
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⚫ |
* [http://www.religionomics.com/index.html Economics of Religion Gateway:] |
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⚫ | * [https://web.archive.org/web/20041210032955/http://www.businessweek.com/magazine/content/04_49/b3911107_mz057.htm "Economists Are Getting Religion,"] ''Business Week'' |
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⚫ | * [http://www.ener-online.org/about.html European Network on the Economics of Religion] |
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⚫ | * [https://web.archive.org/web/20090417021330/http://www.religionlink.org/tip_050131b.php "The economics of religion"] |
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⚫ | * [http://www.businessweek.com/magazine/content/04_49/b3911107_mz057.htm "Economists Are Getting Religion,"] ''Business Week'' |
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⚫ | * [http://www.religionlink.org/tip_050131b.php "The economics of religion"] |
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{{DEFAULTSORT:Economics Of Religion}} |
{{DEFAULTSORT:Economics Of Religion}} |
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[[Category: |
[[Category:Economy and religion| ]] |
The economics of religion concerns both the application of the techniques of economics to the study of religion and the relationship between economic and religious behaviours.[1][2] Contemporary writers on the subject trace it back to Adam Smith (1776).[3]
Empirical work examines the causal influence of religion in microeconomics to explain individual behaviour[4] and in the macroeconomic determinants of economic growth.[5] Religious economics (ortheological economics) is a related subject sometimes[quantify] overlapping or conflated with the economics of religion.[6]
Adam Smith laid a foundation for economic analysis for religion in The Wealth of Nations (1776), stating that religious organisations are subject to market forces, incentive and competition problems like any other sector of the economy.[7][need quotation to verify][8] Max Weber later identified a relationship between religion and economic behaviour, attributing in 1905 the modern advent of capitalism to the Protestant reformation.[9]
Research highlights the importance of religious orthodoxy on moral behaviours and versions of the Golden Rule “Do unto others as you would have others do unto you” are common to most major religions.[10] Others argue it promotes cooperation and trust within culturally defined groups or clubs.[1] Studies compare the complementary effects of religious values such as charity, forgiveness, honesty and tolerance and religious social groups where membership instils favouritism or discrimination towards in or outgroup members.[11]
The believing channel of religion behaviours concerns costly effort concerned with divine reputation. Azzi and Ehrenberg (1975) propose individuals allocate time and money to secular and religious institutions to maximise utility in this life and the afterlife.[12] The colonisation of religious minds by the morally concerned supernatural or “Big Gods”[13] diffused behaviours derived from moral instruction.
The belonging approach to religion considers the social notion of between and within religious groups. Iannaconne (1998) assigns religion as a 'club good' from a rational choice perspective where costly rituals exclude free-riders from in-group benefits. Field experiments also evidence religious people are more trusting and cooperative with fellow religious adherents. Many experimental studies suggest group belonging has a greater influence on behaviour than belief orthodoxy.[14] As Darwin (1874) among others argue, the promotion of cooperative in-group behaviours is not unique to religious networks.[15]
Experimental methods can be applied to isolate the effect of religion on behaviour patterns and to distinguish between believing versus belonging channels. Experimental methods are useful in the economics of religion to standardise measurement and identify causal effect.[16] Methods include looking at religion in various games – Prisoner's dilemma, public goods game, ultimatum game, dictator game and parametric choice. Generally, as Hoffman's (2011) survey shows, few statistically significant results have been identified which commentators attribute to opposing positive versus negative effects between and within individuals.[17]
Effects of religion on economic outcomes
Studies suggest there is a channel from religious behaviours to macroeconomic outcomes of economic growth, crime rates and institutional development.[19] Scholars hypothesise religion impacts economic outcomes through religious doctrines promoting thrift, work ethic, honesty and trust.[20] These channels were described by Max Weber in his work The Protestant Ethic and the Spirit of Capitalism. Weber indicates that Protestant teachings were an important force behind the transition to modern day capitalism in Europe.[21] Other studies highlight the effects of religion on human capital formation as the main mechanism behind the dependency. Human capital formation is driven by higher religious importance of literacy [22]
Effects of economic outcomes on religion
Studies indicate a two-way interaction between economic growth and religion. Secularization theory predicts that economic development reduces religious participation.[23] The empirical evidence in favour of this relationship is mixed.[24][25]
Religion can have long-lasting effects on a society and its economy. For instance, municipalities of Spain with a history of a stronger inquisitorial presence show lower economic performance and educational attainment today.[26] Similarly, Protestantism in Germany has long affected education and thus economic performance. In 1816, school attendance was about 50% in catholic regions while it was about 66% in Protestant regions.[27] Higher literacy rates of Protestants can be observed in the 1870s/1880s in Prussia. It can be caused by the fact, that Martin Luther favoured Christians reading the Bible by themselves [22] Elements of Protestant ethic described by Weber and economic prosperity may have emerged before the Reformation. In case of England, regions that were exposed to Cistercian monasteries experienced a faster productivity growth from the 13th century onwards. The cultural influence was persistent even after the monasteries were dissolved. Modern attitudes towards hard work are positively related with influence of the Cistercians in the region.[28]
The correlation between religion and economic outcomes can be interpreted in two ways: (1) a feature intrinsic to religion which affects growth or (2) a feature correlated to religion but not religion itself which affects growth. Existing cross-country literature is criticised for inability to distinguish between the two explanations, a problem termed endogeneity bias. Controlling for country fixed effects mitigates bias but more recent studies utilise field and natural experiments to identify the causal effect of religion.[29] Robustness of cross-country results to changes in specification of the statistical models is criticised in the literature.[30]
The revenue of every established church [...] is a branch [...] of the general revenues of the state, which is thus diverted to purpose very different from the defence of the state. The tythe, for example, is a real land-tax [...]. The more of this fund that is given to the church, the less, it is evident, can be spared to the state. [...] all other things being supposed equal, the richer the church, the poorer must necessarily be, either the sovereign on the one hand, or the people on the other [...].