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The religious transition. A long-run perspective

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  • Martin Paldam

    ()

  • Erich Gundlach

    ()

Abstract

Religiosity is defined as the importance of religion in all aspects of life. The definition is operationalized into a robust measure by aggregating 14 items from the World Values Surveys. Religiosity falls by 50 % when countries pass through the transition from being underdeveloped to becoming a developed one. A formal test shows that long-run causality is predominantly from income to religiosity. The transition slope is robust to measurement error and composition of the country sample. The empirical macro relation is rationalized by some micro theory: Most components of the demand for religious goods are reduced by rising income. Churches supply religious goods directly and through three additional channels: education, healthcare, and social security. Rising income caused churches to lose control over the additional channels. Copyright Springer Science+Business Media, LLC 2013

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 156 (2013)
Issue (Month): 1 (July)
Pages: 105-123

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Handle: RePEc:kap:pubcho:v:156:y:2013:i:1:p:105-123

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Web page: http://www.springerlink.com/link.asp?id=100332

Related research

Keywords: Religiosity; Economic development; Transition; Substitution; Biogeography; O11; Z12;

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References

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  1. Gundlach, Erich & Paldam, Martin, 2009. "A farewell to critical junctures: Sorting out long-run causality of income and democracy," European Journal of Political Economy, Elsevier, vol. 25(3), pages 340-354, September.
  2. Martin Paldam & Erich Gundlach, 2007. "Two Views on Institutions and Development: The Grand Transition vs. the Primacy of Institutions," Kiel Working Papers 1315, Kiel Institute for the World Economy.
  3. 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.
  4. Azzi, Corry & Ehrenberg, Ronald G, 1975. "Household Allocation of Time and Church Attendance," Journal of Political Economy, University of Chicago Press, vol. 83(1), pages 27-56, February.
  5. Masters, William A. & McMillan, Margaret S., 2001. "Climate And Scale In Economic Growth," Miscellaneous Papers 11845, Agecon Search.
  6. Laurence R. Iannaccone, 1998. "Introduction to the Economics of Religion," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1465-1495, September.
  7. Rachel M. McCleary & Robert J. Barro, 2006. "Religion and Economy," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 49-72, Spring.
  8. Krueger, Anne O, 1996. " Political Economy of Agricultural Policy," Public Choice, Springer, vol. 87(1-2), pages 163-75, April.
  9. Lipford, Jody & McCormick, Robert E. & Tollison, Robert D., 1993. "Preaching matters," Journal of Economic Behavior & Organization, Elsevier, vol. 21(3), pages 235-250, August.
  10. Gundlach, Erich & Paldam, Martin, 2009. "The transition of corruption: From poverty to honesty," Economics Letters, Elsevier, vol. 103(3), pages 146-148, June.
  11. Olsson, Ola & Hibbs, Douglas Jr., 2005. "Biogeography and long-run economic development," European Economic Review, Elsevier, vol. 49(4), pages 909-938, May.
  12. Opfinger, Matthias, 2011. "Religious Market Theory vs. Secularization: The Role of Religious Diversity Revisited," Hannover Economic Papers (HEP) dp-475, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
  13. Robert B. Ekelund Jr. & Robert F. Hebert & Robert D. Tollison, 2008. "The Marketplace of Christianity," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262550717, December.
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Cited by:
  1. Harttgen, Kenneth & Opfinger, Matthias, 2013. "National Identity and Religious Diversity," MPRA Paper 50151, University Library of Munich, Germany.
  2. Erich Gundlach & Matthias Opfinger, 2012. "Religiosity as a determinant of happiness," Research Papers in Economics 2012-06, University of Trier, Department of Economics.

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