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The Economic Effects of the Protestant Reformation: Testing the Weber Hypothesis in the German Lands

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  • Davide Cantoni

Abstract

Many theories, most famously Max Webers essay on the Protestant ethic, have hypothesized that Protestantism should have favored economic development. With their considerable religious heterogeneity and stability of denominational affiliations until the 19th century, the German Lands of the Holy Roman Empire present an ideal testing ground for this hypothesis. Using population figures in a dataset comprising 272 cities in the years 13001900, I find no effects of Protestantism on economic growth. The finding is robust to the inclusion of a variety of controls, and does not appear to depend on data selection or small sample size. In addition, Protestantism has no effect when interacted with other likely determinants of economic development. I also analyze the endogeneity of religious choice; instrumental variables estimates of the effects of Protestantism are similar to the OLS results.

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Bibliographic Info

Paper provided by Barcelona Graduate School of Economics in its series Working Papers with number 524.

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Date of creation: Dec 2010
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Handle: RePEc:bge:wpaper:524

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Keywords: Protestantism; Culture; Economic Growth; Historical Development; Germany;

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  1. Cantoni, Davide & Acemoglu, Daron & Robinson, James A. & Johnson, Simon, 2010. "The Consequences of Radical Reform: The French Revolution," Munich Reprints in Economics 20003, University of Munich, Department of Economics.
  2. Robert B. Ekelund, Jr. & Robert F. Hebert & Robert D. Tollison, 2002. "An Economic Analysis of the Protestant Reformation," Journal of Political Economy, University of Chicago Press, vol. 110(3), pages 646-671, June.
  3. Botticini, Maristella & Eckstein, Zvi, 2004. "Jewish Occupational Selection: Education, Restrictions, or Minorities?," IZA Discussion Papers 1224, Institute for the Study of Labor (IZA).
  4. Galor, Oded, 2004. "From Stagnation to Growth: Unified Growth Theory," CEPR Discussion Papers 4581, C.E.P.R. Discussion Papers.
  5. Sascha O. Becker & Ludger Woessmann, 2009. "Was Weber Wrong? A Human Capital Theory of Protestant Economic History," The Quarterly Journal of Economics, MIT Press, vol. 124(2), pages 531-596, May.
  6. Grier, Robin, 1997. "The Effect of Religion on Economic Development: A Cross National Study of Sixty-three Former Colonies," Kyklos, Wiley Blackwell, vol. 50(1), pages 47-62.
  7. Jörg L. Spenkuch, 2010. "The Protestant Ethic and Work: Micro Evidence from Contemporary Germany," SOEPpapers on Multidisciplinary Panel Data Research 330, DIW Berlin, The German Socio-Economic Panel (SOEP).
  8. Becker, Sascha O. & Hornung, Erik & Wößmann, Ludger, 2011. "Education and catch-up in the industrial revolution," Munich Reprints in Economics 20261, University of Munich, Department of Economics.
  9. Murat Iyigun, 2008. "Luther and Suleyman," The Quarterly Journal of Economics, MIT Press, vol. 123(4), pages 1465-1494, November.
  10. Ulrich Blum & Leonard Dudley, 2001. "Religion and economic growth: was Weber right?," Journal of Evolutionary Economics, Springer, vol. 11(2), pages 207-230, February.
  11. Rubin, Jared, 2011. "Printing and Protestants: reforming the economics of the Reformation," MPRA Paper 31267, University Library of Munich, Germany.
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  1. Protestantism and economic growth
    by Economic Logician in Economic Logic on 2013-04-22 14:46:00
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