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Religion and economic growth: was Weber right?

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  • Leonard Dudley

    (CRDE and Economics Department, Universit, de Montr, al, Montr, al, OC, H3C3J7, Canada)

  • Ulrich Blum

    (Economics Faculty, Dresden University of Technology, Mommsenstra, e 13, 01062 Dresden, Germany)

Abstract

Evidence of falling wages in Catholic cities and rising wages in Protestant cities between 1500 and 1750, during the spread of literacy in the vernacular, is inconsistent with most theoretical models of economic growth. In The Protestant Ethic, Weber suggested an alternative explanation based on culture. Here, a theoretical model confirms that a small change in the subjective cost of cooperating with strangers can generate a profound transformation in trading networks. In explaining urban growth in early-modern Europe, specifications compatible with human-capital versions of the neoclassical model and endogenous-growth theory are rejected in favor of a "small-world" formulation based on the Weber thesis.

Suggested Citation

  • Leonard Dudley & Ulrich Blum, 2001. "Religion and economic growth: was Weber right?," Journal of Evolutionary Economics, Springer, vol. 11(2), pages 207-230.
    • Handle: RePEc:spr:joevec:v:11:y:2001:i:2:p:207-230
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • Z12 - Other Special Topics - - Cultural Economics - - - Religion
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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