Government regulation of religion and investments in human and physical capital
Purpose - The purpose of this paper is to analyze the causal link between government regulation of religion and the choice of investing in human and physical capital. Design/methodology/approach - The paper uses an analytical model with a government setting the output quota to transfer to religious activities. This depends on the extent to which it is an ideological government that uses religion either for legitimacy aims or for the ideological control of population. Workers and entrepreneurs observe the quota and simultaneously choose the investment in human and physical capital, which may trigger, Findings - Directing resources to religious activities may be detrimental to output performance. This may occur if an ideological government sets the optimal quota above the quotas preferred by private agents. This negatively affects the investment in physical and human capital and output performance. Originality/value - Despite the importance of government regulation of religion in the literature, its effect on output performance has not been thoroughly analyzed yet. In this respect, the paper aims to further investigate the causal links between religion regulation related to government type and the investments in human and physical capital and the output level.
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Volume (Year): 37 (2010)
Issue (Month): 2 (January)
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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.:
- Schlicht, Ekkehart, . "Economic Analysis and Organised Religion," Chapters in Economics, University of Munich, Department of Economics.
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8931, National Bureau of Economic Research, Inc.
- McCleary, Rachel & Barro, Robert, 2002. "Religion and Political Economy in an International Panel," Scholarly Articles 3221170, Harvard University Department of Economics.
- Lehrer, Evelyn L., 2005. "Young Women's Religious Affiliation and Participation as Determinants of High School Completion," IZA Discussion Papers 1818, Institute for the Study of Labor (IZA).
- McCleary, Rachel & Barro, Robert, 2005.
"Which Countries Have State Religions?,"
3710663, Harvard University Department of Economics.
- 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.
- Pahlavani, Mosayeb & Wilson, Ed & Valadkhani, Abbas, 2005. "Structural Changes in the Iranian Economy: An Empirical Analysis with Endogenously Determined Breaks," Economics Working Papers wp05-05, School of Economics, University of Wollongong, NSW, Australia.
- Daron Acemoglu, 1996. "A Microfoundation for Social Increasing Returns in Human Capital Accumulation," The Quarterly Journal of Economics, Oxford University Press, vol. 111(3), pages 779-804.
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