The economics of religion
How does religion affect the economy? How do economic factors impact religious choices? With a few exceptions, economists have largely kept their practical mitts off the mystical topic of faith – until recently.
Now scholars in huge numbers are analyzing the intersection of faith and economics. They include people from a range of disciplines from across the United States and around the world, and students doing cutting-edge work. The excitement has even inspired an organization dedicated to the economics of religion, which formally kicked off in fall 2004 with a conference that attracted international research papers.
Why it Matters
People’s beliefs affect practical decisions in everyday life, including economic ones, and religious organizations can be powerful players in the secular realms of government and politics.
Questions for reporters
With pioneering scholars energetically at work, story possibilities and questions abound for journalists:
• How do people “buy” and “sell” what religious organizations have to offer?
• How do religions compete with one another for “customers”?
• How does membership in a strict or extreme religious group pay off – not just in the afterlife, but in the here and now? Do the “goods” include mutual insurance? Education? Law and order when the government is weak?
• Is it possible to decrease the supply of suicide bombers by increasing abundance through freer markets? Or does the answer lie in reducing demand for bombers by targeting the organizations that call for them?
• How does religion, or its suppression, affect economic growth?
• Does faith generate individual behavior that boosts the economy?
• How do religious beliefs affect how people choose to spend their money?
• How do congregations’ religious ethics govern their financial decisions – in giving, spending, saving, investing, borrowing, allocating and other money matters?
Skip to background
National and international sources
International sources
• Esa Mangeloja, a lecturer in the economics department at the University of Jyvaskyla, Finland, has been researching the economics of religion. Read his paper “Economic Growth and Religious Production Efficiency.” Contact +358 14 2602647, eman@econ.jyu.fi.
• Ishita Datta Ray, a research scholar in the economics department at Jadavpur University, West Bengal, India, and Tuhin K. Das, an economics professor at Jadavpur University, wrote “Exploring the Market of Hindu Religion.” Contact tuhinkdas@vsnl.net.
• Janet T. Landa, an economics professor at York University in Toronto, has written about the bioeconomics of religious and ethnically homogenous merchant groups. Contact 416-736-2100 ext. 33879, jlanda@yorku.ca.
• Danny Cohen-Zada, a postdoctoral student at Ben-Gurion University of the Negev in Beer-Sheva, Israel, researches the economics of religion. Read his paper “Preserving Religious Identity Through Education: Economic Analysis and Evidence from the U.S.” Contact danoran@bgumail.bgu.ac.il.
National sources
• Laurence R. Iannaccone, (pronounced “YAWN -uh – cone -ee”) Koch Professor of Economics at George Mason University in Fairfax, Va., is a leading authority internationally on the economics of religion. He heads the Association for the Study of Religion, Economics and Culture and directs the Consortium for the Economic Study of Religion. ASREC was formally launched in October 2004 with a conference that drew 55 research papers, many of which are cited below and posted on the association’s web site. Read Iannaccone’s paper “The Market for Martyrs.” Read a paper he wrote with Michael Makowsky of George Mason University, “Accidental Atheists: Agent-based Explanations for the Persistence of Religious Regionalism.” Contact Iannaccone at 703-993-2319, larry@econzone.com.
• Carrie Miles, an organizational psychologist and consultant, is executive director of the Association for the Study of Religion, Economics and Culture and is associate director of the Consortium for the Economic Study of Religion. She is the author of a book with the working title The Fall and Redemption of Love: Biblical Solutions to Problems of Marriage, Family, and Sexuality in the Twenty-First Century, expected to be published in 2005 by Brazos Press; the book uses economics and social science to understand biblical teachings on marriage and the family. Contact 703-815-5077, carrie@econzone.com.
• Robert H. Nelson, professor of public policy at the University of Maryland in College Park, has expertise in economic ethics. His books include Economics as Religion: From Samuelson to Chicago and Beyond (Pennsylvania State Press, 2001). Read Nelson’s paper “Anti-Terrorism and Economic Theology: An Exercise in ‘Comparative Theology.’” He gave a keynote speech at Princeton Theological Seminary that was published as “What is Economic Theology?” in the February 2004 issue of The Princeton Seminary Bulletin. Contact 301-405-6345, nelsonr@umd.edu.
• Ariela Keysar and Barry Kosmin, Brooklyn College of the City University of New York, are the authors of Religion in a Free Market (Paramount Publishing, forthcoming 2005) and Religion and Political Party Preference: New Findings from the American Religious Identification Survey (Paramount, 2004). Read their paper “The Impact of Religious Identification on Differences in Educational Attainment Among American Women 2001.” Contact Keysar at akeysar@aol.com and Kosmin at kosmin.jpr@jpr.org.uk.
• Robert J. Barro, Paul M. Warburg Professor of Economics at Harvard University, co-wrote with Rachel McCleary (see next entry), the papers “International Determinants of Religiosity” and “Religion and Economic Growth.” Read a March 7, 2004, Boston Globe article on Barro and McCleary’s research. Contact Barro at 617-495-3203, rbarro@harvard.edu.
• Rachel McCleary directs the Religion, Political Economy and Society Project at Harvard’s Weatherhead Center for International Affairs and is a lecturer in Harvard’s government department. She co-wrote with Robert J. Barro (see previous entry), the papers “International Determinants of Religiosity” and “Religion and Economic Growth.” Contact McCleary at 617-495-7697, mccleary@wcfia.harvard.edu.
• Earl Grinols, Distinguished Professor of Economics at Baylor University in Waco, Texas, is president of the Association of Christian Economists. He wrote Gambling in America: Costs and Benefits (Cambridge University Press, 2004). Contact 254-710-7522, Earl_Grinols@baylor.edu.
• Ross B. Emmett is an associate professor at James Madison College, Michigan State University. He has written “The Idea of a Secular Society Revisited” in Faith, Reason, and Economics: Essays in Honour of Anthony Waterman, edited by Derek Hum (St. John’s College Press, 2003; and “Frank Knight: Economics vs. Religion” in Economics and Religion, ed. H.G. Brennan and A.M.C. Waterman (Kluwer Academic Press, 1994). Contact Emmett at emmettr@msu.edu.
Background
Read these articles about the emerging study of economics of religion:
• A Jan. 17, 2004, article in The Economist about Eli Berman’s work on terrorism, posted by ASREC.
• A Dec. 6, 2004, BusinessWeek article.
• A July 29, 2004, article in The Regional Economist, a publication of the Federal Reserve Bank of St. Louis.
• An Oct. 3, 2004, New York Times article.
Regional sources
• Richard Sosis is an anthropology professor at the University of Connecticut in Storrs. Read a paper he co-authored, “Scars for War: Evaluating Alternative Signaling Explanations for Cross-cultural Variance in Ritual Costs.” Contact 860-486-4264, richard.sosis@uconn.edu.
• Edward Glaeser, an economics professor at Harvard University in Cambridge, Mass., and doctoral students Giacomo A.M. Ponzetto and Jesse Shapiro wrote the paper “Strategic Extremism: Why Republicans and Democrats Divide on Religious Values.” Contact Glaeser at 617-495-0575, eglaeser@harvard.edu.
• Lanse P. Minkler and Metin M. Cosgel, associate professors of economics at the University of Connecticut in Storrs, wrote the papers “Religious Identity and Consumption” and “Rationality, Integrity, and Religious Behavior,” both posted by the University of Connecticut. Contact Minkler at 860-486-4070, minkler@uconnvm.uconn.edu. Contact Cosgel at 860-486-4662, cosgel@uconnvm.uconn.edu.
• Candi K. Cann, a doctoral student in the study of religion at Harvard University in Cambridge, Mass., wrote the “The Marketplace of Conversion: Comparisons in Chinese and Latin American Pentecostalism.” Contact 617-493-4069, cann@fas.harvard.edu.
• Kenneth V. Greene, Distinguished Professor of Economics at Binghamton University, State University of New York, and Bong Joon Yoon, economics professor at Binghamton, have written about religiosity, economics and life satisfaction. Contact Greene at 607-777-2944, kgreene@binghamton.edu. Contact Yoon at 607-777-2987, yoon@binghamton.edu.
• Max L. Stackhouse, the Rimmer and Ruth de Vries Professor of Reformed Theology and Public Life at Princeton Theological Seminary in Princeton, N.J., wrote the foreword to Robert H. Nelson’s Economics as Religion: From Samuelson to Chicago and Beyond (Pennsylvania State University Press, 2001). Contact 609-497-7898, max.stackhouse@ptsem.edu.
• Sociologist Donald B. Kraybill is a Distinguished College Professor and senior research fellow at the Young Center for Anabaptists and Pietist Studies at Elizabethtown College in Elizabethtown, Pa. His books include, as co-author, Amish Enterprise: From Plows to Profits (Johns Hopkins University Press, 2004). Contact 717-361-1469, Kraybilld@etown.edu.
• Brian Grim, a doctoral candidate in sociology at Pennsylvania State University and a faculty research associate at the Social Science Research Institute there, wrote the paper “The Cities of God Versus the Countries of Earth: The Restriction of Religious Freedom (RRF) Index.” Contact 814-865-0667, bjg213@psu.edu.
• Robert D. Tollison, professor of economics at Clemson University in Clemson, S.C., has expertise in the economics of religion. His books include, as co-author, Sacred Trust: The Medieval Church as an Economic Firm (Oxford University Press, 1996). He has co-written a draft manuscript, Economics and Christianity. Contact 864-656-0483, rtollis@clemson.edu.
• Barak D. Richman is an assistant professor of law at Duke University in Durham, N.C. He has written the paper “How Community Institutions Create Economic Advantage: Jewish Diamond Merchants in New York.” Contact 919-613-7244, richman@law.duke.edu.
• Daniel Hungerman is an economics doctoral student at Duke University in Durham, N.C., who researches public policy and religiosity. Read his paper “Race and Charitable Church Activity.” Contact 617-588-1435, danh@econ.duke.edu.
• Nathaniel Paxson, a doctoral student in economics at George Mason University in Fairfax, Va., wrote the paper “The Entrepreneurial Ethic of the Sikhs: Religious Signaling and the Importance of Social Capital for Trust and Exchange.” Contact 703-993-2331, npaxson@gmu.edu.
• James Hudnut-Beumler is Anne Potter Wilson Distinguished Professor of American Religious History and dean at the divinity school at Vanderbilt University in Nashville, Tenn. He directed the Material History of American Religion Project, which focused on material objects and economic themes. Hudnut-Beumler’s books include Generous Saints: Congregations Rethinking Ethics and Money (Alban Institute, 1999). He is working on an economic history of religion for the University of North Carolina Press titled God’s Gold: American Protestants, Their Churches and Their Money. Contact 615-343-3960, james.hudnut-beumler@vanderbilt.edu.
• Economist Robert B. Ekelund is Lowder Eminent Scholar Emeritus at Auburn University in Auburn, Miss. His books include, as co-author, Sacred Trust: The Medieval Church as an Economic Firm (Oxford University Press, 1996). He has co-written a draft manuscript, Economics and Christianity. His paper “An Economic Analysis of the Protestant Reformation” was published in the 2002 Journal of Political Economy. Contact 334-821-1404, bobekelund@prodigy.net.
• Robert F. Hebert is visiting professor of economics at the University of Louisiana-Lafayette. His books include, as co-author, Sacred Trust: The Medieval Church as an Economic Firm (Oxford University Press, 1996). He has co-written a draft manuscript, Economics and Christianity. Contact 337-482-6665, rfh9914@louisiana.edu.
• Evelyn Lehrer is a professor of economics at the University of Illinois at Chicago who specializes in the economics of religion. She is working on a book tentatively titled The Effects of Religion on Economic and Demographic Behavior (Routledge, forthcoming 2006). Read her paper “Religious Affiliation and Participation as Determinants of Women’s Educational Attainment and Wages.” Contact 312-413-2363, elehrer@uic.edu.
• Fenggang Yang is a professor of sociology of religion at Purdue University in West Lafayette, Ind., who has written about the economics of religious shortage in communist China. Contact 765-494-2641, yang@soc.purdue.edu.
• Daniel V.A. Olson, a professor of sociology and anthropology at Indiana University in South Bend, and David Sikkink, an assistant sociology professor at the University of Notre Dame, wrote the paper “Religious Competition and Faithful Remnant: Two Ways that Religious Markets Affect Congregations.” Contact Olson at 574-237-4235, dolson@iusb.edu. Contact Sikkink at 219-631-3166, dsikkink@nd.edu.
• Joseph P. Daniels, associate professor of economics at Marquette University in Milwaukee, and Marc von der Ruhr, assistant professor of economics at St. Norbert College in De Pere, Wis., wrote the paper “God and the Global Economy: Religion and Attitudes Toward Trade and Immigration.” Contact Daniels at 414- 288-3368, joseph.daniels@marquette.edu. Contact von der Ruhr at 920-403-3522, marc.von-der-ruhr@snc.edu.
• Constantino Hevia, a doctoral student in economics at the University of Chicago, wrote “Some Implications of Belief in the Afterlife and the Allocation of Time to Spirituality.” Contact chevia@uchicago.edu.
• Barry Chiswick is Distinguished Professor of Economics at the University of Illinois at Chicago and specializes in the economics of religion. He has published widely on the topic of economic issues involving Jewish people. Contact 312-996-2683, brchis@uic.edu.
• Carmel Chiswick is a professor of economics at the University of Illinois at Chicago who focuses on the economics of religion, especially involving the American Jewish family, Jewish religious observance and American Jewish communal institutions. Contact 312-996-8721, cchis@uic.edu.
• Thomas Borchert, a doctoral candidate in religious history at the University of Chicago, wrote a paper titled “Tourist and Temples: Exploring the Effect of the Tourism Market on the Theravada Monks of Southwest China.” Contact 773-288-2764, taborche@midway.uchicago.edu.
• Daniel Chen, a postdoctoral student in economics at the University of Chicago, wrote the paper “Club Goods and Group Identity: Evidence from Islamic Resurgence During the Indonesian Financial Crisis.” Contact dlc@uchicago.edu.
• Ayman Reda is an adjunct lecturer and doctoral student in the economics department at Michigan State University-Dearborn with expertise in the economics of religion and politics. Read Reda’s paper “Religious Charities and Government Funding.” Contact 313-213-3950, redaayma@msu.edu.
• Thomas More Smith, a clinical assistant professor of economics at the University of Illinois at Chicago, has been researching religious affiliation and philanthropy. Contact 312-355-3984, Tomsmith@uic.edu.
• Charles M. North and Carl Gwin, assistant professors of economics at Baylor University in Waco, Texas, wrote about the links between religion and economic growth in “Religion’s Role in the Rule of Law.” They have also written about “Religious Freedom and the Unintended Costs of State Religion” for the Southern Economic Journal. Contact North at 254-710-6229, Charles_North@Baylor.edu. Contact Gwin at 254-710-6251, carl_gwin@baylor.edu.
• Yunfeng Lu, a postdoctoral research scholar at Baylor University in Waco, Texas, wrote the paper “The Unintended Consequences of Religious Suppression: Understanding the Growth of Suppressed Religions.” Contact 254-710-1230, paul_lu@baylor.edu.
• Robert Woodberry, a sociology professor at the University of Texas at Austin who specializes in the sociology of religion, has written about the educational and economic consequences of restricting missions. He is starting work on “The Project on Religion and Economic Change,” funded by the Templeton Foundation, to study the economic impact of various religious traditions, including 150 years of Protestant and Catholic missionary activity. It will also study the economic consequences of religious transformations in Brazil and Malawi. Contact 512-232-6308, bobwood@mail.la.utexas.edu.
• Eli Berman, a professor of economics at the University of California at San Diego, specializes in the economics of religion. Read a paper he co-wrote with David Laitin, “Rational Martyrs vs. Hard Targets: Evidence on the Tactical Use of Suicide Attacks“; a paper Berman wrote on an economist’s view of radical religious militias; and his “Sect, Subsidy and Sacrifice: An Economist’s View of Ultra-Orthodox Jews” article for the August 2000 issue of the Quarterly Journal of Economics, accessible through his web site. Contact 858-534-2858, elberman@weber.ucsd.edu.
• David Laitin, James T. Watkins IV and Elise V. Watkins Professor of Political Science at Stanford University, co-wrote with Eli Berman the paper “Rational Martyrs vs. Hard Targets: Evidence on the Tactical Use of Suicide Attacks.” Contact 650-725-9556, dlaitin@stanford.edu.
• Timur Kuran is professor of economics and law and King Faisal Professor of Islamic Thought and Culture at the University of Southern California in Los Angeles. He has researched economic issues involving Islam, and his books include Islam and Mammon: The Economic Predicaments of Islamism (Princeton University Press, 2004). Contact 650-723-3982, tkuran@stanford.edu.
• Andrew Yuengert, John and Francis Duggan chair of economics at Pepperdine University in Malibu, Calif., has conducted research in the empirical study of religion. He is a former president of the Association of Christian Economists. His books include The Boundaries of Technique: Ordering Positive and Normative Concerns in Economic Research (Lexington Books, 2004) and Inhabiting the Land: The Case for the Right to Migrate (Acton Institute for Religion and Liberty, 2003). Contact 310-506-4380, Andrew.Yuengert@pepperdine.edu.
• Anthony Gill, associate professor of political science at the University of Washington in Seattle, researches church-state relations from a microeconomic perspective. He teaches a course on religion, politics and economics. His books include Rendering Unto Caesar: The Catholic Church and the State in Latin America (University of Chicago, 1997). Read his paper “Welfare Spending and Religious Participation: Evidence from the United States.” Contact 206-543-4718, tgill@u.washington.edu.
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