Wednesday, March 10, 2010

Religion and Savings

Economic Logic blog points to the following paper on religion and savings.

“Striving for Savings” – religion and individual economic behavior

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Anja Klaubert ( (Institute of Economics, Leuphana University of Lüneburg, Germany)

In the Neoclassical growth model the saving ratio and human capital might be seen as the most important factors fostering economic growth. At last since Weber [2005 (1904/05)] it seems clear, that religious beliefs and involvement shapes both social and economic human behavior. This paper tests the hypothesis whether religious belonging and believing influence a household’s economic decision-making in the USA, which was found to foster economic growth, namely the saving ratio at the individual level. Using data from the Panel Study of Income Dynamics (PSID), we find religious effects on saving. Regarding the decision to save money no large differences within the Christian religions, namely Protestants and Catholics, were found. However, large differences exist compared to non-religious people as well as to Non-Christians and Jews.

1 comment:

Kevin Denny said...

Thats interesting, I think one could replicate that on SHARE. I'm guessing that you might find Muslims saving more given the strictures on usury. Curious to know how non-believers save differently.