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Religion and Economic Growth: Was Weber Right?

Author

Listed:
  • Blum, U.
  • Dudley, L.

Abstract

Evidence of falling wages in Catholic cities and rising wages in Protestant cities between 1500 and 1750, during the spread of literady and the vernacular, is inconsistent with most theorretical 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 od cooperating with strangers can generate a profound transformation in trading networks.

Suggested Citation

  • Blum, U. & Dudley, L., 2001. "Religion and Economic Growth: Was Weber Right?," Cahiers de recherche 2001-05, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    • Handle: RePEc:mtl:montec:2001-05
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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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