IDEAS home Printed from https://ideas.repec.org/a/kap/pubcho/v156y2013i1p105-123.html
   My bibliography  Save this article

The religious transition. A long-run perspective

Author

Abstract

Religiosity is defined as the importance of religion in all aspects of life. The definition is operationalized into a robust measure by aggregating 14 items from the World Values Surveys. Religiosity falls by 50 % when countries pass through the transition from being underdeveloped to becoming a developed one. A formal test shows that long-run causality is predominantly from income to religiosity. The transition slope is robust to measurement error and composition of the country sample. The empirical macro relation is rationalized by some micro theory: Most components of the demand for religious goods are reduced by rising income. Churches supply religious goods directly and through three additional channels: education, healthcare, and social security. Rising income caused churches to lose control over the additional channels. Copyright Springer Science+Business Media, LLC 2013

Suggested Citation

  • Martin Paldam & Erich Gundlach, 2013. "The religious transition. A long-run perspective," Public Choice, Springer, vol. 156(1), pages 105-123, July.
    • Handle: RePEc:kap:pubcho:v:156:y:2013:i:1:p:105-123
    DOI: 10.1007/s11127-012-9934-z
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11127-012-9934-z
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11127-012-9934-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gundlach, Erich & Paldam, Martin, 2009. "The transition of corruption: From poverty to honesty," Economics Letters, Elsevier, vol. 103(3), pages 146-148, June.
    2. Gundlach, Erich & Paldam, Martin, 2009. "A farewell to critical junctures: Sorting out long-run causality of income and democracy," European Journal of Political Economy, Elsevier, vol. 25(3), pages 340-354, September.
    3. Masters, William A & McMillan, Margaret S, 2001. "Climate and Scale in Economic Growth," Journal of Economic Growth, Springer, vol. 6(3), pages 167-186, September.
    4. Laurence R. Iannaccone, 1998. "Introduction to the Economics of Religion," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1465-1495, September.
    5. Mario Ferrero & Ronald Wintrobe (ed.), 2009. "The Political Economy of Theocracy," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-62006-3, September.
    6. Olsson, Ola & Hibbs, Douglas Jr., 2005. "Biogeography and long-run economic development," European Economic Review, Elsevier, vol. 49(4), pages 909-938, May.
    7. Christian Bjørnskov & Martin Paldam, 2012. "The spirits of capitalism and socialism," Public Choice, Springer, vol. 150(3), pages 469-498, March.
    8. Laurence R. Iannaccone, 1998. "Corrigenda [Introduction to the Economics of Religion]," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 1941-1941, December.
    9. Martin Paldam & Erich Gundlach, 2008. "Two Views on Institutions and Development: The Grand Transition vs the Primacy of Institutions," Kyklos, Wiley Blackwell, vol. 61(1), pages 65-100, February.
    10. Opfinger, Matthias, 2011. "Religious Market Theory vs. Secularization: The Role of Religious Diversity Revisited," Hannover Economic Papers (HEP) dp-475, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    11. Krueger, Anne O, 1996. "Political Economy of Agricultural Policy," Public Choice, Springer, vol. 87(1-2), pages 163-175, April.
    12. Robert B. Ekelund Jr. & Robert F. Hebert & Robert D. Tollison, 2008. "The Marketplace of Christianity," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262550717, December.
    13. Rachel M. McCleary & Robert J. Barro, 2006. "Religion and Economy," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 49-72, Spring.
    14. 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.
    15. Lipford, Jody & McCormick, Robert E. & Tollison, Robert D., 1993. "Preaching matters," Journal of Economic Behavior & Organization, Elsevier, vol. 21(3), pages 235-250, August.
    16. JOHN T. DURKIN Jr. & ANDREW M. GREELEY, 1991. "A Model of Religious Choice Under Uncertainty," Rationality and Society, , vol. 3(2), pages 178-196, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Erich Gundlach & Matthias Opfinger, 2013. "Special Issue. Guest Editor: Zhihao Yu," Review of Development Economics, Wiley Blackwell, vol. 17(3), pages 523-539, August.
    2. Klaus Prettner & Holger Strulik, 2017. "It's a Sin—Contraceptive Use, Religious Beliefs, and Long-run Economic Development," Review of Development Economics, Wiley Blackwell, vol. 21(3), pages 543-566, August.
    3. Harttgen, Kenneth & Opfinger, Matthias, 2012. "In the Nation We Trust: National Identity as a Substitute for Religion," AICCON Working Papers 107-2012, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    4. Kenneth Harttgen & Matthias Opfinger, 2014. "National Identity and Religious Diversity," Kyklos, Wiley Blackwell, vol. 67(3), pages 346-367, August.
    5. David de la Croix & Fabio Mariani & Marion Mercier, 2023. "Driven By Institutions, Shaped By Culture: Human Capital And The Secularization Of Marriage In Italy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(4), pages 1777-1818, November.
    6. Pál Czeglédi, 2023. "Why is the West unique in linking religiosity to market friendliness?," Economic Affairs, Wiley Blackwell, vol. 43(1), pages 73-88, February.
    7. Gouda Moamen & Park Sang-Min, 2015. "Religious Loyalty and Acceptance of Corruption," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(2), pages 184-206, April.
    8. Holger Strulik, 2016. "Secularization And Long-Run Economic Growth," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 177-200, January.
    9. Opfinger, Matthias & Gundlach, Erich, 2011. "Religiosity as a determinant of happiness," Open Access Publications from Kiel Institute for the World Economy 48360, Kiel Institute for the World Economy (IfW Kiel).
    10. Ella Paldam & Martin Paldam, 2017. "The political economy of churches in Denmark, 1300–2015," Public Choice, Springer, vol. 172(3), pages 443-463, September.
    11. Martin Paldam, 2019. "Does system instability harm development? A comparative empirical study of the long run," Economics Working Papers 2019-07, Department of Economics and Business Economics, Aarhus University.
    12. Liang, Yinhe & Dong, Zhiyong, 2019. "Has education led to secularization? Based on the study of compulsory education law in China," China Economic Review, Elsevier, vol. 54(C), pages 324-336.
    13. Erich Gundlach & Martin Paldam, 2016. "Socioeconomic transitions as common dynamic processes," Economics Working Papers 2016-06, Department of Economics and Business Economics, Aarhus University.
    14. Sascha O. Becker & Markus Nagler & Ludger Woessmann, 2017. "Education and religious participation: city-level evidence from Germany’s secularization period 1890–1930," Journal of Economic Growth, Springer, vol. 22(3), pages 273-311, September.
    15. Pittaluga, Giovanni B. & Reghezza, Alessio & Seghezza, Elena, 2020. "Reconsidering the modernization hypothesis: The role of diversified production and interest‐group competition," European Journal of Political Economy, Elsevier, vol. 65(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Opfinger, Matthias & Gundlach, Erich, 2011. "Religiosity as a determinant of happiness," Open Access Publications from Kiel Institute for the World Economy 48360, Kiel Institute for the World Economy (IfW Kiel).
    2. Erich Gundlach & Matthias Opfinger, 2013. "Special Issue. Guest Editor: Zhihao Yu," Review of Development Economics, Wiley Blackwell, vol. 17(3), pages 523-539, August.
    3. Gundlach, Erich & Paldam, Martin, 2009. "A farewell to critical junctures: Sorting out long-run causality of income and democracy," European Journal of Political Economy, Elsevier, vol. 25(3), pages 340-354, September.
    4. Mariya Aleksynska & Barry Chiswick, 2013. "The determinants of religiosity among immigrants and the native born in Europe," Review of Economics of the Household, Springer, vol. 11(4), pages 563-598, December.
    5. Janine Höhener & Christoph A. Schaltegger, 2012. "Religionsökonomie: eine Übersicht," CREMA Working Paper Series 2012-08, Center for Research in Economics, Management and the Arts (CREMA).
    6. Raphaël Franck & Laurence Iannaccone, 2014. "Religious decline in the 20th century West: testing alternative explanations," Public Choice, Springer, vol. 159(3), pages 385-414, June.
    7. Erich Gundlach & Martin Paldam, 2016. "Socioeconomic transitions as common dynamic processes," Economics Working Papers 2016-06, Department of Economics and Business Economics, Aarhus University.
    8. Augenblick, Ned & Cunha, Jesse M. & Dal Bó, Ernesto & Rao, Justin M., 2016. "The economics of faith: using an apocalyptic prophecy to elicit religious beliefs in the field," Journal of Public Economics, Elsevier, vol. 141(C), pages 38-49.
    9. Naci Mocan & Luiza Pogorelova, 2014. "Compulsory Schooling Laws and Formation of Beliefs: Education, Religion and Superstition," NBER Working Papers 20557, National Bureau of Economic Research, Inc.
    10. Becker, Sascha O. & Nagler, Markus & Woessmann, Ludger, 2014. "Education Promoted Secularization," IZA Discussion Papers 8016, Institute of Labor Economics (IZA).
    11. Alfonsi, Livia & Bauer, Michal & Chytilová, Julie & Miguel, Edward, 2024. "Human capital affects religious identity: Causal evidence from Kenya," Journal of Development Economics, Elsevier, vol. 167(C).
    12. Bettendorf, L. & Dijkgraaf, E., 2010. "Religion and income: Heterogeneity between countries," Journal of Economic Behavior & Organization, Elsevier, vol. 74(1-2), pages 12-29, May.
    13. Naci Mocan & Luiza Pogorelova, 2014. "Compulsory Schooling Laws and Formation of Beliefs: Education, Religion and Superstition," Koç University-TUSIAD Economic Research Forum Working Papers 1423, Koc University-TUSIAD Economic Research Forum.
    14. Anil Rupasingha & David Freshwater, 2001. "Economics of Religious Participation in the Rural South," The Review of Regional Studies, Southern Regional Science Association, vol. 29(3), pages 256-271, Winter.
    15. Nielsen, Jytte Seested & Bech, Mickael & Christensen, Kaare & Kiil, Astrid & Hvidt, Niels Christian, 2017. "Risk aversion and religious behaviour: Analysis using a sample of Danish twins," Economics & Human Biology, Elsevier, vol. 26(C), pages 21-29.
    16. Hanson, Gordon H. & Xiang, Chong, 2013. "Exporting Christianity: Governance and doctrine in the globalization of US denominations," Journal of International Economics, Elsevier, vol. 91(2), pages 301-320.
    17. Pavol Minárik, 2013. "Ekonomie náboženství a její relevance pro ekonomy ve střední Evropě [Economics of Religion and its Relevance for Economists in Central Europe]," Politická ekonomie, Prague University of Economics and Business, vol. 2013(5), pages 691-704.
    18. Anja Koebrich Leon, 2013. "Religion and Economic Outcomes – Household Savings Behavior in the USA," Working Paper Series in Economics 268, University of Lüneburg, Institute of Economics.
    19. Maryam Dilmaghani, 2012. "Global financial crisis: dharmic transgressions and solutions," International Journal of Social Economics, Emerald Group Publishing, vol. 39(1), pages 55-80, January.
    20. Mark Pingle & Tigran Melkonyan, 2012. "To believe or not believe…or not decide: A decision-theoretic model of agnosticism," Rationality and Society, , vol. 24(4), pages 408-441, November.

    More about this item

    Keywords

    Religiosity; Economic development; Transition; Substitution; Biogeography; O11; Z12;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:156:y:2013:i:1:p:105-123. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.