The curious relationship between religion and economics

This article explores how religious participation influences economic attitudes. We develop a formal model that explains both why people engage in religious activities differently and how these differences affect their views on economic policy.

Key findings:

• Religious participation decreases with societal development, ability to produce secular goods, and state regulations on religion
• But increases significantly with inequality levels
• The impact varies by income group: it strengthens economic conservatism among the poor but weakens it among the rich

Our analysis challenges conventional views about this relationship. Using data from over 70 countries in the pooled World Values Survey, we show that religious participation declines as societies develop and regulations ease, contradicting secularization theories.