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Religion and economic growth: was Weber right?

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Author Info
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)

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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.

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Publisher Info
Article provided by Springer in its journal Journal of Evolutionary Economics.

Volume (Year): 11 (2001)
Issue (Month): 2 ()
Pages: 207-230
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Handle: RePEc:spr:joevec:v:11:y:2001:i:2:p:207-230

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Keywords: Growth - Religion - Networks - Culture - Europe;

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  2. Roy Thurik & Lorraine Uhlaner & Jan Hutjes, 2002. "Post-Materialism as a Cultural Factor Influencing Entrepreneurial Activity across Nations," Scales Research Reports H200202, EIM Business and Policy Research. [Downloadable!]
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  3. Joao Ricardo Faria & Miguel León-Ledesma, 2003. "Cultural Heritage and Growth," Studies in Economics 0303, Department of Economics, University of Kent. [Downloadable!]
  4. Zahide Karakitapoğlu Aygün & Mahmut Arslan & Salih Güney, 2008. "Work Values of Turkish and American University Students," Journal of Business Ethics, Springer, vol. 80(2), pages 205-223, June. [Downloadable!] (restricted)
  5. Tiago Cavalcanti & Stephen Parente & Rui Zhao, 2007. "Religion in macroeconomics: a quantitative analysis of Weber’s thesis," Economic Theory, Springer, vol. 32(1), pages 105-123, July. [Downloadable!] (restricted)
  6. Michele Bagella & Leonardo Becchetti & Stefano Caiazza, 2002. "Cultures, Finance And Growth," Departmental Working Papers 157, Tor Vergata University, CEIS. [Downloadable!]
  7. Marcus Noland, 2003. "Religion, Culture, and Economic Performance," Peterson Institute Working Paper Series WP03-8, Peterson Institute for International Economics. [Downloadable!]
  8. Joao Ricardo Faria & Miguel A. Leon-Ledesma, 2002. "Habit Formation, Work Ethics, and Technological Progress," Studies in Economics 0210, Department of Economics, University of Kent. [Downloadable!]
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  9. Renneboog, L.D.R. & Spaenjers, C., 2009. "Where Angels Fear to Trade: The Role of Religion in Household Finance," Discussion Paper 2009-34, Tilburg University, Center for Economic Research. [Downloadable!]
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  10. Bednarik, Radek & Filipova, Lenka, 2009. "The role of religion and political regime for human capital and economic development," MPRA Paper 14556, University Library of Munich, Germany. [Downloadable!]
  11. Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2002. "People's Opium? Religion and Economic Attitudes," CEPR Discussion Papers 3588, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  12. Benito Arruñada, 2003. "Specialization and Rent-Seeking in Moral Enforcement: The Case of Confession," Economics Working Papers 653, Department of Economics and Business, Universitat Pompeu Fabra, revised Jul 2009. [Downloadable!]
  13. Chris Minns, & Mariyan Rizov, 2003. "The spirit of capitalism? Immigration, religion, and self-employment in early 20th century Canada," The Institute for International Integration Studies Discussion Paper Series iiisdp08, IIIS. [Downloadable!]
  14. Marco Alfo & Giovanni Trovato & Robert J. Waldmann, 2008. "Testing for country heterogeneity in growth models using a finite mixture approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(4), pages 487-514. [Downloadable!]
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