The paper by Rachel M. McCleary and Robert J. Barro explores the two-way interaction between religion and political economy, focusing on how economic development and political institutions affect religious participation and beliefs, and how religiosity influences individual characteristics and economic performance. The authors review previous studies and present their ongoing quantitative research using international data. **Religion as a Dependent Variable:** - **Secularization Model:** Economic development reduces religious participation and beliefs, influencing politics and governance. - **Rational Choice Approach:** Religiosity is linked to the probability of salvation, with time and other costs affecting participation. - **Religion Market Model:** Government regulation and subsidy influence competition among religious providers, affecting the nature of religious products. **Religion as an Independent Variable:** - **Weber’s Analysis:** Religiosity affects economic outcomes by fostering traits like work ethic, honesty, and thrift. - **Social-Capital/Cultural Perspective:** Networking from formal religious services promotes growth, but the focus is on the influence of beliefs on behavior. **Salvation and Economic Incentives in World Religions:** - Different religions offer varying economic incentives through salvific merit, with Calvinist Protestantism emphasizing predestination and individual action having no impact on salvation. - Catholicism, Hinduism, and Islam have medium salvific merit, while Buddhism emphasizes sharing wealth and communal insurance. - Islam and Catholicism interpret hell and heaven as having transitory levels, with physical survival in Islam. **Quantitative Analysis of International Data:** - The authors use modern data to test theories of religion as a dependent and independent variable. - They analyze the determinants of religiosity, including economic development, government influence, and historical factors. - Key findings include a negative effect of per capita GDP on religiosity, positive effects of state religion on participation and beliefs, and negative effects of government regulation of the religion market. - The extent of religious pluralism positively influences monthly attendance at formal religious services. - Contemporaneous and ex-communism have significant negative effects on religiosity. **Religious Influences on Economic Growth:** - The authors examine how religious beliefs and participation affect economic growth, using models similar to those in cross-country growth studies. - They find that religiosity is a significant determinant of economic growth, with positive effects on growth rates. Overall, the paper provides a comprehensive overview of the complex relationship between religion and economic development, highlighting both the demand and supply sides of religious participation and its impact on economic outcomes.The paper by Rachel M. McCleary and Robert J. Barro explores the two-way interaction between religion and political economy, focusing on how economic development and political institutions affect religious participation and beliefs, and how religiosity influences individual characteristics and economic performance. The authors review previous studies and present their ongoing quantitative research using international data. **Religion as a Dependent Variable:** - **Secularization Model:** Economic development reduces religious participation and beliefs, influencing politics and governance. - **Rational Choice Approach:** Religiosity is linked to the probability of salvation, with time and other costs affecting participation. - **Religion Market Model:** Government regulation and subsidy influence competition among religious providers, affecting the nature of religious products. **Religion as an Independent Variable:** - **Weber’s Analysis:** Religiosity affects economic outcomes by fostering traits like work ethic, honesty, and thrift. - **Social-Capital/Cultural Perspective:** Networking from formal religious services promotes growth, but the focus is on the influence of beliefs on behavior. **Salvation and Economic Incentives in World Religions:** - Different religions offer varying economic incentives through salvific merit, with Calvinist Protestantism emphasizing predestination and individual action having no impact on salvation. - Catholicism, Hinduism, and Islam have medium salvific merit, while Buddhism emphasizes sharing wealth and communal insurance. - Islam and Catholicism interpret hell and heaven as having transitory levels, with physical survival in Islam. **Quantitative Analysis of International Data:** - The authors use modern data to test theories of religion as a dependent and independent variable. - They analyze the determinants of religiosity, including economic development, government influence, and historical factors. - Key findings include a negative effect of per capita GDP on religiosity, positive effects of state religion on participation and beliefs, and negative effects of government regulation of the religion market. - The extent of religious pluralism positively influences monthly attendance at formal religious services. - Contemporaneous and ex-communism have significant negative effects on religiosity. **Religious Influences on Economic Growth:** - The authors examine how religious beliefs and participation affect economic growth, using models similar to those in cross-country growth studies. - They find that religiosity is a significant determinant of economic growth, with positive effects on growth rates. Overall, the paper provides a comprehensive overview of the complex relationship between religion and economic development, highlighting both the demand and supply sides of religious participation and its impact on economic outcomes.