Economics of religion

[3] Empirical work examines the causal influence of religion in microeconomics to explain individual behaviour[4] and in the macroeconomic determinants of economic growth.

[6] Adam Smith laid a foundation for economic analysis for religion in The Wealth of Nations (1776), stating that religious organisations are subject to market forces, incentive and competition problems like any other sector of the economy.

[7][need quotation to verify][8] Max Weber later identified a relationship between religion and economic behaviour, attributing in 1905 the modern advent of capitalism to the Protestant reformation.

Azzi and Ehrenberg (1975) propose individuals allocate time and money to secular and religious institutions to maximise utility in this life and the afterlife.

Generally, as Hoffman's (2011) survey shows, few statistically significant results have been identified which commentators attribute to opposing positive versus negative effects between and within individuals.

[19] Scholars hypothesise religion impacts economic outcomes through religious doctrines promoting thrift, work ethic, honesty and trust.

For instance, municipalities of Spain with a history of a stronger inquisitorial presence show lower economic performance and educational attainment today.

It can be caused by the fact, that Martin Luther favoured Christians reading the Bible by themselves [22] Elements of Protestant ethic described by Weber and economic prosperity may have emerged before the Reformation.

[28] Economists view a person's participation in religious activities, such as attending worship services or venerating a deity, as a form of consumption within a market.