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Religiosity and income: A panel cointegration and causality analysis

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  • Herzer, Dierk
  • Strulik, Holger

Abstract

In this paper we examine the long-run relationship between religiosity and income using retrospective data on church attendance rates for a panel of countries from 1925 to 1990. We employ panel cointegration and causality techniques to control for omitted variable and endogeneity bias and test for the direction of causality. We show that there exists a negative long-run relationship between the level of religiosity, measured by church attendance, and the level of income, measured by the log of GDP per capita. The result is robust to alternative estimation methods, potential outliers, sample selection, different measures of church attendance, and alternative specifications of the income variable. Long-run causality runs in both directions, higher income leads to declining religiosity and declining religiosity leads to higher income.

Suggested Citation

  • Herzer, Dierk & Strulik, Holger, 2013. "Religiosity and income: A panel cointegration and causality analysis," Center for European, Governance and Economic Development Research Discussion Papers 168, University of Goettingen, Department of Economics.
  • Handle: RePEc:zbw:cegedp:168
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    Cited by:

    1. Holger Strulik, 2016. "Secularization And Long-Run Economic Growth," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 177-200, January.
    2. Strulik, Holger, 2016. "An economic theory of religious belief," Journal of Economic Behavior & Organization, Elsevier, vol. 128(C), pages 35-46.
    3. Krenz, Astrid, 2013. "Political institutions and trade-evidence for the long-run relationship and causality," Center for European, Governance and Economic Development Research Discussion Papers 182, University of Goettingen, Department of Economics.
    4. repec:taf:rsocec:v:75:y:2017:i:2:p:139-158 is not listed on IDEAS

    More about this item

    Keywords

    religiosity; church attendance; income; panel cointegration; causality;

    JEL classification:

    • N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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