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The religious transition. A long-run perspective

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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

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  • 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
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    Cited by:

    1. 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.
    2. 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).
    3. Holger Strulik, 2016. "Secularization And Long-Run Economic Growth," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 177-200, January.
    4. 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.
    5. Ella Paldam & Martin Paldam, 2017. "The political economy of churches in Denmark, 1300–2015," Public Choice, Springer, vol. 172(3), pages 443-463, September.
    6. 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.
    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. 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.
    9. 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).
    10. 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.
    11. Kenneth Harttgen & Matthias Opfinger, 2014. "National Identity and Religious Diversity," Kyklos, Wiley Blackwell, vol. 67(3), pages 346-367, August.
    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 & Matthias Opfinger, 2013. "Special Issue. Guest Editor: Zhihao Yu," Review of Development Economics, Wiley Blackwell, vol. 17(3), pages 523-539, August.
    14. 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.
    15. 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.

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    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

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