MIT Prof: Religion Is Good for Economy
"Jonathan Gruber (MIT, Department of Economics) has posted "Religious Market Structure, Religious Participation, and Outcomes: Is Religion Good for You?" on the NBER web site. Gruber concludes that being in an area with more co-religionists leads to better economic outcomes through the channel of increased religious participation. Although this paper does not investigate the mechanism through which religiosity creates these results, Gruber suggests four possibilities: that religious attendance increases the number of social interactions in a way peculiar to religious settings; that religious institutions provide financial and emotional "insurance" that help people mitigate their losses when setbacks occur; that attendance at religious schools may be an advantage; and, finally, that religious faith may simply improve well-being directly by enabling the faithful to be "less stressed out" by the problems of every day life."
-- Tax Prof