The religious transition - A long-run perspective

TY - UNPB

T1 - The religious transition - A long-run perspective

AU - Paldam, Martin

AU - Gundlach, Erich

PY - 2009

Y1 - 2009

N2 - We use factor analysis to derive a robust measure of religiosity from items reported in five waves of the World Value Survey. Our measure of religiosity is negatively correlated with per capita income. Development apparently causes religiosity to fall to about half its pre-modern level. Most components of the demand for religion are reduced by development. The supply of religion declines once churches lose control over the institutions providing collective goods like education, health, and social security. These goods used to be supplied by churches jointly with religious services but tend to be supplied by the state with rising levels of develop¬ment. Aspects of supply and demand are integrated in a CES production function framework that can explain the direction of causality in the observed negative correlation between income and religiosity.

AB - We use factor analysis to derive a robust measure of religiosity from items reported in five waves of the World Value Survey. Our measure of religiosity is negatively correlated with per capita income. Development apparently causes religiosity to fall to about half its pre-modern level. Most components of the demand for religion are reduced by development. The supply of religion declines once churches lose control over the institutions providing collective goods like education, health, and social security. These goods used to be supplied by churches jointly with religious services but tend to be supplied by the state with rising levels of develop¬ment. Aspects of supply and demand are integrated in a CES production function framework that can explain the direction of causality in the observed negative correlation between income and religiosity.

KW - Levels of development, religiosity, biogeography

M3 - Working paper

BT - The religious transition - A long-run perspective

PB - Institut for Økonomi, Aarhus Universitet

CY - Aarhus

ER -