State and religion
Abstract
State and religion have historically had an uneasy relationship, at times being close allies, at others harsh adversaries, and at still others largely independent. This paper develops an economic model of this relationship, where the state's objective is to maximize net tax revenue. Religious goods benefit the state in two ways: first, they provide utility to citizens, thus allowing the state to extract more taxes before running up against citizens' reservation utility (the point at which they would revolt), and second, they potentially provide legitimacy to the state, thereby lowering the costs of tax collection. If the latter effect is strong enough, the state may find it optimal to take control of religion, either to enhance its legitimizing effect, or to suppress its de-legitimizing effect. Greater competition in the religion market and democratic polity make it less likely for the state to control religion. To evaluate the model's implications, we use recent cross-country data on the relationship between religion and state, including variables from the "Religion and State Project" and measures coded from the 2001, 2003, and 2005 International Religious Freedom reports. We also examine in more detail some of the paradigmatic cases indicated by the model, presenting various types of evidence from current and historical examples of each case.Download Info
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Bibliographic Info
Article provided by Elsevier in its journal Journal of Comparative Economics.
Volume (Year): 37 (2009)
Issue (Month): 3 (September)
Pages: 402-416
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Web page: http://www.elsevier.com/locate/inca/622864
Related research
Keywords: State Religion Church Legitimacy Loyalty Market concentration Democracy Power;Other versions of this item:
- Metin Cosgel & Thomas Miceli, 2008. "State and Religion," Working papers 2008-04, University of Connecticut, Department of Economics, revised Mar 2009.
- H10 - Public Economics - - Structure and Scope of Government - - - General
- P5 - Economic Systems - - Comparative Economic Systems
- N4 - Economic History - - Government, War, Law, International Relations, and Regulation
- Z12 - Other Special Topics - - Cultural Economics - - - Religion
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert J. Barro & Rachel M. McCleary, 2004.
"Which Countries Have State Religions?,"
NBER Working Papers
10438, National Bureau of Economic Research, Inc.
- Robert J. Barro & Rachel M. Mccleary, 2005. "Which Countries Have State Religions?," The Quarterly Journal of Economics, MIT Press, vol. 120(4), pages 1331-1370, November.
- McCleary, Rachel & Barro, Robert, 2005. "Which Countries Have State Religions?," Scholarly Articles 3710663, Harvard University Department of Economics.
- Brennan,Geoffrey & Buchanan,James M., 1980.
"The Power to Tax,"
Cambridge Books,
Cambridge University Press, number 9780521233293.
- Brennan,Geoffrey & Buchanan,James M., 2006. "The Power to Tax," Cambridge Books, Cambridge University Press, number 9780521027922.
- Laurence R. Iannaccone, 1998. "Corrigenda [Introduction to the Economics of Religion]," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 1941-1941, December.
- Rachel M. McCleary & Robert J. Barro, 2006. "Religion and Economy," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 49-72, Spring.
- Laurence R. Iannaccone, 1998. "Introduction to the Economics of Religion," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1465-1495, September.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Cosgel, Metin & Miceli, Thomas & Ahmed, Rasha, 2009.
"Law, state power, and taxation in Islamic history,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 71(3), pages 704-717, September.
- Metin Cosgel & Rasha Ahmed & Thomas Miceli, 2007. "Law, State Power, and Taxation in Islamic History," Working papers 2007-01, University of Connecticut, Department of Economics, revised Jul 2008.
- Metin Cosgel & Rasha Ahmed & Thomas Miceli, 2008. "Law, State Power, and Taxation in Islamic History," Papers on Economics of Religion 08/02, Department of Economic Theory and Economic History of the University of Granada..
- Johnson, Noel D & Koyama, Mark, 2012. "Legal Centralization and the Birth of the Secular State," MPRA Paper 40887, University Library of Munich, Germany.
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