Advanced Search
MyIDEAS: Login to save this paper or follow this series

Does Religion Affect Economic Growth and Happiness? Evidence from Ramadan

Contents:

Author Info

  • Filipe R. Campante
  • David H. Yanagizawa-Drott

Abstract

We study the economic effects of religious practices in the context of the observance of Ramadan fasting, one of the central tenets of Islam. To establish causality, we exploit variation in the length of the fasting period due to the rotating Islamic calendar. We report two key, quantitatively meaningful results: 1) longer Ramadan fasting has a negative effect on output growth in Muslim countries, and 2) it increases subjective well-being among Muslims. We then examine labor market outcomes, and find that these results cannot be primarily explained by a direct reduction in labor productivity due to fasting. Instead, the evidence indicates that Ramadan affects Muslims' relative preferences regarding work and religiosity, suggesting that the mechanism operates at least partly by changing beliefs and values that influence labor supply and occupational choices beyond the month of Ramadan itself. Together, our results indicate that religious practices can affect labor supply choices in ways that have negative implications for economic performance, but that nevertheless increase subjective well-being among followers.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.nber.org/papers/w19768.pdf
Download Restriction: Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html. Free access is also available to older working papers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19768.

as in new window
Length:
Date of creation: Dec 2013
Date of revision:
Handle: RePEc:nbr:nberwo:19768

Note: DEV EFG POL
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Phone: 617-868-3900
Email:
Web page: http://www.nber.org
More information through EDIRC

Related research

Keywords:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please 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.:
as in new window
  1. Spenkuch, Jörg L., 2010. "The Protestant Ethic and Work: Micro Evidence from Contemporary Germany," MPRA Paper 26444, University Library of Munich, Germany.
  2. Jean-Paul Carvalho, 2010. "Coordination and Culture," Economics Series Working Papers, University of Oxford, Department of Economics 489, University of Oxford, Department of Economics.
  3. Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2002. "People's Opium? Religion and Economic Attitudes," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3588, C.E.P.R. Discussion Papers.
  4. Steven N. Durlauf & Andros Kourtellos & Chih Ming Tan, 2006. "Is God in the Details? A Reexamination of the Role of Religion in Economic Growth," Discussion Papers Series, Department of Economics, Tufts University, Department of Economics, Tufts University 0613, Department of Economics, Tufts University.
  5. Daniel J. Benjamin & Ori Heffetz & Miles S. Kimball & Alex Rees-Jones, 2012. "What Do You Think Would Make You Happier? What Do You Think You Would Choose?," American Economic Review, American Economic Association, American Economic Association, vol. 102(5), pages 2083-2110, August.
  6. David Clingingsmith & Asim Ijaz Khwaja & Michael Kremer, 2009. "Estimating the Impact of the Hajj: Religion and Tolerance in Islam's Global Gathering," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 124(3), pages 1133-1170, August.
  7. Berggren, Niclas & Bjørnskov, Christian, 2009. "Is the Importance of Religion in Daily Life Related to Social Trust? Cross-Country and Cross-State Comparisons," Ratio Working Papers, The Ratio Institute 142, The Ratio Institute.
  8. Douglas Almond & Bhashkar Mazumder, 2011. "Health Capital and the Prenatal Environment: The Effect of Ramadan Observance during Pregnancy," American Economic Journal: Applied Economics, American Economic Association, American Economic Association, vol. 3(4), pages 56-85, October.
  9. Dolan, Paul & Peasgood, Tessa & White, Mathew, 2008. "Do we really know what makes us happy A review of the economic literature on the factors associated with subjective well-being," Journal of Economic Psychology, Elsevier, Elsevier, vol. 29(1), pages 94-122, February.
  10. Robert J. Barro, 2012. "Convergence and Modernization Revisited," NBER Working Papers 18295, National Bureau of Economic Research, Inc.
  11. van Ewijk, Reyn, 2011. "Long-term health effects on the next generation of Ramadan fasting during pregnancy," Journal of Health Economics, Elsevier, Elsevier, vol. 30(6), pages 1246-1260.
  12. Robert C. Feenstra & Robert Inklaar & Marcel Timmer, 2013. "The Next Generation of the Penn World Table," NBER Working Papers 19255, National Bureau of Economic Research, Inc.
  13. Baele, Lieven & Farooq, Moazzam & Ongena, Steven, 2011. "Of Religion and Redemption: Evidence from Default on Islamic Loans," CEPR Discussion Papers, C.E.P.R. Discussion Papers 8504, C.E.P.R. Discussion Papers.
  14. Audretsch, David B & Bönte, Werner & Tamvada, Jagannadha Pawan, 2007. "Religion and Entrepreneurship," CEPR Discussion Papers, C.E.P.R. Discussion Papers 6378, C.E.P.R. Discussion Papers.
  15. Timur Kuran, 2004. "Why the Middle East is Economically Underdeveloped: Historical Mechanisms of Institutional Stagnation," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 18(3), pages 71-90, Summer.
  16. Iannaccone, Laurence R, 1992. "Sacrifice and Stigma: Reducing Free-Riding in Cults, Communes, and Other Collectives," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 100(2), pages 271-91, April.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Jean-François Carpantier & Anastasia Litina, 2014. "Dissecting the Act of God - An Exploration of the Effect of Religion on Economic Activity," CREA Discussion Paper Series 14-09, Center for Research in Economic Analysis, University of Luxembourg.
  2. Spenkuch, Jörg & Tillmann, Philipp, 2014. "Elite Influence? Religion, Economics, and the Rise of the Nazis," MPRA Paper 54909, University Library of Munich, Germany.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:19768. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.