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Religion and economic growth: was Weber right?

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Author Info
Leonard Dudley () (CRDE and Economics Department, Universit, de Montr, al, Montr, al, OC, H3C3J7, Canada)
Ulrich Blum () (Economics Faculty, Dresden University of Technology, Mommsenstra, e 13, 01062 Dresden, Germany)

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Abstract

Evidence of falling wages in Catholic cities and rising wages in Protestant cities between 1500 and 1750, during the spread of literacy in the vernacular, is inconsistent with most theoretical models of economic growth. In The Protestant Ethic, Weber suggested an alternative explanation based on culture. Here, a theoretical model confirms that a small change in the subjective cost of cooperating with strangers can generate a profound transformation in trading networks. In explaining urban growth in early-modern Europe, specifications compatible with human-capital versions of the neoclassical model and endogenous-growth theory are rejected in favor of a "small-world" formulation based on the Weber thesis.

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Article provided by Springer in its journal Journal of Evolutionary Economics.

Volume (Year): 11 (2001)
Issue (Month): 2 ()
Pages: 207-230
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Handle: RePEc:spr:joevec:v:11:y:2001:i:2:p:207-230

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Related research
Keywords: Growth - Religion - Networks - Culture - Europe

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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)
    Other versions:
  2. Benito Arruñada, 2003. "Catholic Confession of Sins as Third-Party Moral Enforcement," Economics Working Papers 653, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 2004. [Downloadable!]
  3. Do, Quy-Toan & Phung, Tung Duc, 2006. "Superstition, family planning, and human development," Policy Research Working Paper Series 4001, The World Bank. [Downloadable!]
  4. Chris Minns, & Mariyan Rizov, 2003. "The spirit of capitalism? Immigration, religion, and self-employment in early 20th century Canada," The Institute for International Integration Studies Discussion Paper Series iiisdp08, IIIS. [Downloadable!]
  5. Roy Thurik & Lorraine Uhlaner & Jan Hutjes, 2002. "Post-Materialism as a Cultural Factor Influencing Entrepreneurial Activity across Nations," Scales Research Reports H200202, EIM Business and Policy Research. [Downloadable!]
    Other versions:
  6. Joao Ricardo Faria & Miguel León-Ledesma, 2003. "Cultural Heritage and Growth," Studies in Economics 0303, Department of Economics, University of Kent. [Downloadable!]
  7. Tiago Cavalcanti & Stephen Parente & Rui Zhao, 2007. "Religion in macroeconomics: a quantitative analysis of Weber’s thesis," Economic Theory, Springer, vol. 32(1), pages 105-123, July. [Downloadable!] (restricted)
  8. Michele Bagella & Leonardo Becchetti & Stefano Caiazza, 2002. "Cultures, Finance And Growth," Departmental Working Papers 157, Tor Vergata University, CEIS. [Downloadable!]
  9. Marcus Noland, 2003. "Religion, Culture, and Economic Performance," Peterson Institute Working Paper Series WP03-8, Peterson Institute for International Economics. [Downloadable!]
  10. Joao Ricardo Faria & Miguel A. Leon-Ledesma, 2002. "Habit Formation, Work Ethics, and Technological Progress," Studies in Economics 0210, Department of Economics, University of Kent. [Downloadable!]
    Other versions:
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