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Individual's Religiosity Enhances Trust: Latin American Evidence for the Puzzle

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Author Info
PABLO BRANAS-GARZA
MÁXIMO ROSSI
DAYNA ZACLICEVER

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Abstract

This paper explores the effect of religious observance and affiliation to the dominant religion (Catholicism) on trust in institutions and toward others, and market attitudes. The analysis is performed using a Latin American database of 20,000 respondents from 2004 by means of ordered probit models. The most interesting results are:(i) "Trust toward others is positively correlated with both religious observance" and "Catholic affiliation" (and "practice"). (ii) There is a "positive correlation between trust in the government, in the police, in the armed forces, in the judiciary and in the banking system and religious practice" in general. Identical positive findings are obtained for "Catholic affiliation" and "practice", although they may be affected by a majority effect. Moreover, there is no evidence to support the hypotheses of a negative effect of religion on social capital. Copyright (c) 2009 The Ohio State University.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1538-4616.2009.00222.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Money, Credit and Banking.

Volume (Year): 41 (2009)
Issue (Month): 2-3 (03)
Pages: 555-566
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Handle: RePEc:mcb:jmoncb:v:41:y:2009:i:2-3:p:555-566

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  1. Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2002. "People's Opium? Religion and Economic Attitudes," CEPR Discussion Papers 3588, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. Bruce Sacerdote & Edward L. Glaeser, 2001. "Education and Religion," NBER Working Papers 8080, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Pablo Brañas-Garza & Shoshana Neuman, 2006. "Intergenerational Transmission of ‘Religious Capital’: Evidence from Spain," IZA Discussion Papers 2183, Institute for the Study of Labor (IZA). [Downloadable!]
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  4. Cox, James C., 2004. "How to identify trust and reciprocity," Games and Economic Behavior, Elsevier, vol. 46(2), pages 260-281, February. [Downloadable!] (restricted)
  5. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, vol. 87(2), pages 333-38, May. [Downloadable!] (restricted)
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  6. Neuman, Shoshana, 1986. "Religious Observance within a Human Capital Framework: Theory and Application," Applied Economics, Taylor and Francis Journals, vol. 18(11), pages 1193-1202, November.
  7. Robert J. Barro & Rachel M. McCleary, 2002. "Religion and Political Economy in an International Panel," NBER Working Papers 8931, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Productivity Commission, 2003. "Social capital: reviewing the concept and its policy implications," Public Economics 0307001, EconWPA. [Downloadable!]
  9. Garza, Pablo Brañas & Neuman, Shoshana, 2003. "Analyzing Religiosity Within an Economic Framework: The Case of Spanish Catholics," IZA Discussion Papers 868, Institute for the Study of Labor (IZA). [Downloadable!]
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  10. 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. [Downloadable!] (restricted)
  11. Laurence R. Iannaccone, 1998. "Introduction to the Economics of Religion," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1465-1495, September. [Downloadable!] (restricted)
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