Secularization Politics and Science

In general, the conclusion of sociologists that secularization has not substituted for religion is completely correct in our view. In their book Acts of Faith Stark and Finke, for example, devote an entire chapter to Secularization RIP.''27 If we stick to a definition of religion as organization'' and measure it by attendance or membership, this may not be so. In the National Opinion Survey of religion, the fastest growth is no religion.'' Further, the category no religion'' is growing fastest...

Catholicism Protestantism and Economic Performance

Christianity is an idea, and as such is indestructible and immortal, like every idea. Heinrich Heine, History of Religion and Philosophy in Germany Economists are quite naturally interested in the effects of ideology on economic performance, and because religion is arguably the most powerful ideological force of human experience, it is understandable that economic analysis would extend to the role of religion in explaining economic growth and development. The most famous study linking economics...

The Economic Role of Cathedral Building

The conventional model of the decline in rent seeking occasioned by Protestant entry into the religion market is, however, understated (by, for example, the area ABPp in figure 8.2). In order to appreciate this we must note that medieval economic development in Europe usually occurred most dramatically in cities that contained major churches or cathedrals. The great era of cathedral building in Europe was between 1140 and 1280, but the tendency of cathedrals to promote local expenditures...

Sex Life Issues and Schism

The greatest disputes within mainline Protestant denominations and the Roman Catholic Church, as well as between Christians in both the advanced and third world, relate to that most fundamental of human activities matters related to sex and procreation. These developments have led and could possibly lead in a number of instances to schism, since belief in doctrinal interpretations of sex and life issues are undergoing fundamental changes in some mainline churches, including the Baptist,...

Huldrych Zwingli 14841531 Humanist Reformation at Zurich As

Luther anticipated, early Protestants were unable to maintain a single identity. The unity of the new movement was threatened by a major rift between Luther and Zwingli over the doctrine of the Eucharist. An effort at Augsberg to reunite the whole Church failed, but in the spirit of unification, the Protestants produced the Augsberg Confession, a document that established the theological foundation for a new branch of Christendom, which soon took on the name of Lutheranism. Over the next four...

Financing Protestantism

There is, unfortunately, a scarcity of exact information on how the evolving variants of Protestantism were financed. Conventional wisdom is that local churches depended mostly on biblical tithing by members. Where redistributive organizations such as synods did not exist, many congregational churches had to live by their own receipts. These churches, as Adam Smith suggested, most closely tended to the demands of members. Other organizational structures, such as the episcopal form, created...

Product Differentiation and Form Change under Protestantism

Because markets exist for the exchange of products, the nature of a product is central to market analysis. Compared to traditional economic theory, contemporary economics offers a sophisticated view of product in which the essence of any good is defined by the bundle of utility-creating characteristics that customers want and are willing to pay for.1 Hence, a loaf of bread purchased at a convenience store must be seen not merely as bread, but as bread plus convenience. In other words, the...

City Size as a Proxy for Economic Prosperity

DeLong and Shleifer use city size as a measure of economic prosperity in their test of the relationship between political institutions and economic growth in the pre-industrial era.53 They find that slow economic growth in the eight hundred years prior to the Industrial Revolution was associated with absolutist governments, whereas republican governments were more conducive to growth. The affinity of such correlation to the connection between religion and growth is strong, because the medieval...

Primogeniture and Protestant Entry

As a preliminary test of this proposition, we gathered data on the principal entry points of Protestantism and compared the acceptance of the new religion with the conditions most likely to encourage its success or failure. Our stylized theory predicts that societies enforcing primogeniture would be most likely to remain Catholic, whereas those societies with more fluid property laws and hence more opportunities for wealth enhancement by a larger strata of society would find Protestantism more...

Urban Growth and Protestant Entry

In the previous section we argued that primogeniture is a reasonable proxy for income distribution in a medieval society. The predominant historical view, that the Protestant Reformation was basically an urban phenomenon,''57 offers another opportunity to test our theory. Inasmuch as city size and growth reflect exchange volume, and exchange volume reflects wider income distribution, a demonstrable link should exist between urban growth and the practice of primogeniture a proxy for income...

Religion Public Good or Private Good

When we turn our attention to the question of religion as a public or a private good, we encounter different sets of issues. A private good is one that is easily divisible into parts that can be sold in a market so that it becomes the unique possession of the purchaser. By virtue of this unique possession enforced by private property rights the owner of the good can exclude others from the benefits that the good conveys. Hence, private goods are subject to the exclusion principle. An apple, for...

Joint Products Penance and the Price of Leather

Consider tables 4.3 and 4.4 even more closely. They show that meat and fish production both account for a relatively large part of GNP in Peru, Denmark, Taiwan, South Africa, the Netherlands, Canada, Spain, and Chile. Spain is a special case, for reasons we discuss later in this Twenty major meat-producing countries as percent of GNP , 1958 number of new and replacement cardinals in 1966 by country appointed, 1958-1966 Twenty major meat-producing countries as percent of GNP , 1958 number of new...

Measures by the Incumbent Firm to Raise Rivals Costs

In certain respects, the medieval Catholic Church's reaction to Protestant entry was analogous to the reaction of business firms to regulated competition or to the tendency of special interests to seek protective trade legislation. In such cases, incumbent firms seek to protect their market power by raising rivals' costs. In the sixteenth century the rivals were, on the one hand, the new Protestant sects Lutherans, Anglicans, Calvinists, etc. , and on the other, the new heretics from the...

Price Discrimination in the Medieval Religion Market

The first prerequisite for a firm to practice price discrimination is the existence of monopoly power, which the Church had acquired by the Middle Ages. The medieval church took on the posture of a vertically integrated, dominant firm, capable of engaging in product innovation, differentiation, and development.10 From the twelfth century on, it introduced doctrinal innovations that encouraged and facilitated the practice of price discrimination. Through these innovations, church managers were...

Anecdotal Evidence of Market Forces at Work

We believe that the broad contours of history provide evidence for the view that people exhibit a demand for religion and that churches respond by supplying religious services. History tells us that when survival was most uncertain as in primitive societies with low levels of science, education, and resources the forms of religion demanded involved time-consuming rituals, cult-like behavior, and, eventually, club-like organizations e.g., Freemasons or the Knights of Columbus . Existential dread...

What Is the Core Product of Religion

The core product that is supplied by organized religion is information, but it is information of a peculiar sort. It is typical of any religion that the information supplied cannot be verified by experimental, empirical, or other scientific means. Hence, as we noted earlier, religion is a credence good. Moreover, the information provided may be used to satisfy wants on many different margins. For example, moral codes provide unity, social order, and stability. Hence, religion is a public good....

Advantages of the Economic Approach

The events in the United States of September 11, 2001, and their aftermath, have stirred, more than ever, awareness among social scientists of the importance of studying religion. This book seeks to contribute to our understanding of religion by demonstrating the usefulness of economic analysis for the study of Christianity, both past and present. The level of historical and theological analysis presented here is not as deep as some scholars would prefer, but such depth is neither the intent...

Religion Church and Economics

In all history, we do not find a single religion without a church. Emile Durkheim, The Elementary Forms of the Religious Life A glorious Church is like a magnificent feast there is all the variety that may be, but every one chooses out a dish or two that he likes, and lets the rest alone how glorious soever the Church is, every one chooses out of it his own religion, by which he governs himself, and lets the rest alone. John Selden, Table Talk The concepts of religion and church are so...

Is There an Economics of Religion

No urge, primal or modern, is more fundamental than the desire to explain existence. Human curiosity concerning mankind's ultimate origins and destinations has motivated multiple belief systems and organized religions, all seeking, more or less, to provide meaning to life on earth. Although we cannot know for sure, it is quite possible that religion is as old as mankind. Can the same be said of economics Whereas economic behavior is probably as old as Homo erectus, by a common consensus the...

Limitations of the Economic Approach

The extension of Adam Smith's analysis of the economics of religion is even more appropriate today for two reasons Religion remains at the center of culture and civilization, and economic theory has progressed substantially in the past two and a half centuries. Contemporary economics can bring many analytical tools and concepts to bear that were not available to Smith and his contemporaries. Our study relies not only on the standard techniques of demand and supply analysis, but also on...