• Table of Contents
    • Abstract
    • Keywords
    • Article
      • 1 Economics, sociology, and rational choice
      • 2 Households and consumer choice
      • 3 Religion, magic and uncertainty
      • 4 Religious capital
      • 5 Measuring the effects of religious capital
      • 6 Club models of religion
      • 7 Churches as firms
      • 8 Religious markets and government intervention
      • 9 Macroeconomic consequences of religion
      • 10 Religious militancy
      • Conclusion
    • See Also
    • Bibliography
    • How to cite this article

religion, economics of

Laurence R. Iannaccone and Eli Berman
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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Adam Smith invented the economics of religion, famously arguing for church-state separation on efficiency grounds since state religions become inefficient monopoly providers of religious services and because competition for monopoly status is often violent. Smith also developed theories of religious sects and sectarian violence. Modern applications of theory and data generally support Adam Smith's conjectures. Recent work also explores: religious activity as a consumer choice, the demand for spiritual services, religious human capital and religious social capital, club models of sects – benign and violent – and the macroeconomic consequences of beliefs and religiosity.
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How to cite this article

Iannaccone, Laurence R. and Eli Berman. "religion, economics of." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 18 January 2018 <http://www.dictionaryofeconomics.com/article?id=pde2008_E000231> doi:10.1057/9780230226203.1419

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