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Religiosity and risk-taking of Muslims: evidence from lab and field

Author

Listed:
  • Hamza Umer

    (Hitotsubashi University)

  • Takashi Kurosaki

    (Hitotsubashi University)

  • Kazuhiro Obayashi

    (Hitotsubashi University)

Abstract

In this study, we examine the correlation between religiosity and risk taking among the Muslim population. We elicit risk preferences of Muslim subjects in Pakistan in an incentivized laboratory experiment and a non-incentivized field-survey. We operationalize religiosity by using belief-based, ritual-based, and knowledge-based items. We find robust evidence that very religious people as measured by the frequency of prayers (a ritual-based measure) take less risk than less religious people. In contrast, we find inconclusive evidence for the influence of religiosity on risk taking when elicited through other ritual-based measures and measures based on beliefs or knowledge. Our findings suggest that religiosity and risk-taking nexus among Muslims is sensitive to the religiosity measures. Therefore, we discuss the relative effectiveness of different religiosity measures and highlight why the frequency of prayers can be a useful proxy for measuring the religiosity of Muslims.

Suggested Citation

  • Hamza Umer & Takashi Kurosaki & Kazuhiro Obayashi, 2025. "Religiosity and risk-taking of Muslims: evidence from lab and field," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 52(2), pages 273-295, May.
    • Handle: RePEc:kap:empiri:v:52:y:2025:i:2:d:10.1007_s10663-025-09642-6
    DOI: 10.1007/s10663-025-09642-6
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    References listed on IDEAS

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    More about this item

    Keywords

    Religiosity; Risk preferences; Muslim; Lab experiment; Pakistan;
    All these keywords.

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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