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Individual's Religiosity Enhances Trust: Latin American Evidence for the Puzzle

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  • PABLO BRANAS-GARZA
  • MÁXIMO ROSSI
  • DAYNA ZACLICEVER

Abstract

This paper explores the effect of religious observance and affiliation to the dominant religion (Catholicism) on trust in institutions and toward others, and market attitudes. The analysis is performed using a Latin American database of 20,000 respondents from 2004 by means of ordered probit models. The most interesting results are:(i) "Trust toward others is positively correlated with both religious observance" and "Catholic affiliation" (and "practice"). (ii) There is a "positive correlation between trust in the government, in the police, in the armed forces, in the judiciary and in the banking system and religious practice" in general. Identical positive findings are obtained for "Catholic affiliation" and "practice", although they may be affected by a majority effect. Moreover, there is no evidence to support the hypotheses of a negative effect of religion on social capital. Copyright (c) 2009 The Ohio State University.

Suggested Citation

  • Pablo Branas-Garza & Máximo Rossi & Dayna Zaclicever, 2009. "Individual's Religiosity Enhances Trust: Latin American Evidence for the Puzzle," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 41(2-3), pages 555-566, March.
  • Handle: RePEc:mcb:jmoncb:v:41:y:2009:i:2-3:p:555-566
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    References listed on IDEAS

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    1. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, vol. 87(2), pages 333-338, May.
    2. McCleary, Rachel & Barro, Robert, 2002. "Religion and Political Economy in an International Panel," Scholarly Articles 3221170, Harvard University Department of Economics.
    3. Productivity Commission, 2003. "Social capital: reviewing the concept and its policy implications," Public Economics 0307001, University Library of Munich, Germany.
    4. Edward L. Glaeser & Bruce I. Sacerdote, 2008. "Education and Religion," Journal of Human Capital, University of Chicago Press, vol. 2(2), pages 188-215.
    5. Cox, James C., 2004. "How to identify trust and reciprocity," Games and Economic Behavior, Elsevier, vol. 46(2), pages 260-281, February.
    6. Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2003. "People's opium? Religion and economic attitudes," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 225-282, January.
    7. repec:hrv:faseco:30726298 is not listed on IDEAS
    8. Pablo BraÒas-Garza & Shoshana Neuman, 2004. "Analyzing Religiosity within an Economic Framework: The Case of Spanish Catholics," Review of Economics of the Household, Springer, vol. 2(1), pages 5-22, March.
    9. Pablo Brañas-Garza & Shoshana Neuman, 2006. "Intergenerational Transmission of 'Religious Capital': Evidence from Spain," Papers on Economics of Religion 06/02, Department of Economic Theory and Economic History of the University of Granada..
    10. 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.
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    Cited by:

    1. Guido Heineck, 2014. "Love Thy Neighbor: Religion and Prosocial Behavior," SOEPpapers on Multidisciplinary Panel Data Research 704, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. repec:oup:cambje:v:41:y:2017:i:2:p:515-544. is not listed on IDEAS
    3. Berggren, Niclas & Bjørnskov, Christian, 2011. "Is the importance of religion in daily life related to social trust? Cross-country and cross-state comparisons," Journal of Economic Behavior & Organization, Elsevier, vol. 80(3), pages 459-480.
    4. Searing, Elizabeth A.M., 2013. "Love thy neighbor? Recessions and interpersonal trust in Latin America," Journal of Economic Behavior & Organization, Elsevier, vol. 94(C), pages 68-79.
    5. Jaime Ortiz, 2009. "Does Religion Distribution Matter in the Economic Growth of Latin America?," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 8(3), pages 183-199, December.
    6. M. Niaz Asadullah, 2017. "Who Trusts Others? Community and Individual Determinants of Social Capital in a Low-Income Country," Cambridge Journal of Economics, Oxford University Press, vol. 41(2), pages 515-544.
    7. Pablo Brañas-Garza & Antonio M. Espín & Shoshana Neuman, 2013. "Effects of Religiosity on Social Behaviour: Experimental Evidence From a Representative Sample of Spaniards," Working Papers 2013-07, Bar-Ilan University, Department of Economics.

    More about this item

    JEL classification:

    • Z12 - Other Special Topics - - Cultural Economics - - - Religion
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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