Institutional and Economic Determinants of Denominational Fractionalism and Schism
Year 2017,
Volume: 25 Issue: 33, 127 - 144, 31.07.2017
Mehmet Karacuka
,
Martin Leroch
Abstract
In this paper we present an economic approach contributing to the explanation of religious schism, a topic mostly dealt with in the fields of sociology and psychology so far. The main idea is to see religious groups as networks. These networks may serve as a device for exchanging information about and via other members. A modernizing economy is characterized by an increasing number of transactions with an increasing number of partners, leading to increasing transaction costs. It might be profitable for groups to split up in this economic environment in order to economize on these transaction costs. In our view, religious movements with stricter enforcement of their behavioural norms are growing in size, while such with rather liberal attitudes toward their norm enforcement face a loss of members. Historical and empirical results supporting our line of argument are presented. We find that the level of income and education attainment increase the fractionalization ratio in the states. Another interesting point in our empirical results regarding population size is that the number of entrepreneurs is positively correlated with the fractionalization ratio. The number of employees gives a negative coefficient, implying that this group prefers to be part of bigger groups due to their conformist behaviour.
References
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- Clark, S. D. (1947), “Religion: The Religious Factor in Canadian Economic Development” The Journal of Economic History 7, Supplement: Economic Growth: A Symposium, pp. 89-103.
- Clark, S. D. (1951), “Religion and Economic Backward Areas” The American Economic Review 41, No. 2, Papers and Proceedings of the Sixty-third Annual Meeting of the American Economic Association, pp. 258-265.
- Delacroix, J. (1992), “A Critical Empirical Test of the Common Interpretation of the Protestant Ethic and the Spirit of Capitalism.” Paper presented at meetings of Int. Assoc. Business & Society in Leuven, Belgium.
- Delacroix, J. (1995), “Religion and Economic Action: The Protestant Ethic, the Rise of Capitalism, and the Abuses of Scholarship,” Journal of the Scientific Study of Religion Vol. 34, No. 1, pp. 126–27.
- Eisenstadt, S. N. (1968), The Protestant Ethic and Modernization: A Comparative
- View. New York, Basic Books.
- Gardner, H. (1917), “Cooperation among the Mormons”, The Quarterly Journal of Economics 31, No.3, pp. 461-499.
- Greif, A. (1989), “Reputation and Coalitions in Medieval Trade:The Evidence on the Maghribi Traders” The Journal of Economic History 49, No. 4, pp. 857-882.
- Greif, A. (1992), “Institutions and International Trade: Lessons from the Commercial Revolution” American Economic Review 82, No. 2, Papers and Proceedings of the Hundred and Fourth Annual Meeting of the American Economic Association, pp. 128-133.
- Greif, A. (1993), “Contract Enforceability and Economic Institutions in Early Trade:The Maghribi Traders’ Coalition” The American Economic Review 83, No. 3, pp. 525-548.
- Greif, A. (1994), “Cultural Beliefs and the Organization of Society: A Historical and Theoretical Reflection on Collectivist and Individualist Societies”, Journal of Political Economy 102, No. 5, pp. 912-950.
- Guiso, L., S. Paola, L. Zingales (2002), “People’s Opium? Religion and Economic Attitudes”, NBER Working Paper No. 9237.
- Hadaway, C. K., P. L. Marler (1996), “ Response to Iannaccone: Is There a Method to this Madness?”, Journal for the Scientific Study of Religion 35, Nr. 3, 217-222.
- Hexham, I., K. Poewe (2000), “Psychological Aspects of Conversion: The Individual in Crisis”, in: Hexham, I., K. Poewe “Understanding Cults and New Age Religions”, online edition.
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- Iannaccone, L. R. (1996 a), “Reassessing Church Growth: Statistical Pitfalls and their Consequences”, Journal for the Scientific Study of Religion 35, Nr. 3, 197-216.
- Iannaccone, L. R. (1996 b), “Rejoinder to Hage, Hadaway, and Marler: Pitfalls Revisited”, Journal for the Scientific Study of Religion 35, Nr. 3, 226-228.
- Iannaccone, L. R. (1998), “Introduction to the Economics of Religion“, Journal of Economic Literature 36, pp. 1465-1496.
- Iannaccone, L. R. (2000), “Religious Extremism: Origins and Consequences”, Contemporary Jewry 20, pp. 8-29.
- Isaac R. M., J. M. Walker (1988), “Group Size Effects in Public Good Provision: The Voluntary Contributions Mechanism” The Quarterly Journal of Economics 103, No. 1, pp. 179-199.
- Irons W. (1996), “Morality, Religion, and Human Nature”, in Richardson W.M., W. Wildman (eds.), Religion and Science: History, Method, and Dialogue, New York, Routledge, pp. 375–400
- Knight, J., L.Y. Yueh (2002), “The Role of Social Capital in the Labour Market in China”, University of Oxford, Department of Economics, Discussion Paper Nr. 121.
- Kranton, R. (1996), “Reciprocal Exchange: A Self-Sustaining System”, The American Economic Review 86, No. 4, pp. 830-851.
- La Porta, R., F. Lopez-de-Silanes, A. Schleifer, R. Vishny (1997), “Trust in Large Organizations”, The American Economic Review 87, No. 2, pp. 333-338.
- La Porta, R., F. Lopez-de-Silanes, A. Schleifer, R. Vishny (1999), “The Quality of Government”, Journal of Law, Economics and Organization 15, No. 1, pp. 222-27.
- Liebman, R. C., J.R. Sutton, R. Wuthnow (1988), “Exploring the Social Sources of Denominationalism: Schisms in American Protestant Denominations, 1890-1980”, American Sociological Review 53, No. 3, pp. 343-352.
- Marx, Karl. (1975), “Contribution to Critique of Hegel's Philosophy of Law: Introduction”
- Karl Marx, Frederick Engels Collected Works: Vol. III, pp. 184-5.
- Morris, D. M. (1967), “Values as an Obstacle to Economic Growth in South Asia: An Historical Survey”, The Journal of Economic History 27, No.4, pp. 588-607.
- Narayan, D. (1999), “Bonding and Bridging – Social Capital and Poverty”, World Bank, Policy Research Working Paper 2167.
- Niebuhr, R.H. (1965), The Social Sources of Denominationalism, Ninth printing, Cleveland, Meridian Books.
- North, D.C. (1971), “Institutional Change and Economic Growth”, The Journal of Economic History 31, No.1, pp.118-125.
- North, D.C. (1984), “Government and the Cost of Exchange in History”, The Journal of Economic History 44, No. 2, pp. 255-264.
- North, D.C. (1991), “Institutions”, The Journal of Economic Perspectives 5, No. 1, pp. 97-112.
- North, D.C. (1994), “Economic Performance Through Time”, The American Economic Review 84, No.3, pp. 359-368.
- Putnam, R. (1993), Making Democracy Work: Civic Traditions in Modern Italy. Princeton, Princeton University Press,.
- Putnam, R. (1995), “Bowling Alone: America’s Declining Social Capital”, Journal of Democracy 6 I, pp. 65-78. http://xroads.virginia.edu/~HYPER/DETOC/assoc/bowling.html
- Robertson, H.M. (1935), Aspects of the Rise of Economic Individualism: A Critique of Max Weber and his School, Cambridge UK, Cambridge University Press.
- Schaefer, H.-B. C. Ott (2004), The Economic Analysis of Civil Law. London, Edward Elgar.
- Schlicht, E. (1998), On Custom in the Economy, Oxford, Clarendon Press.
- Schuller, T., S. Baron , J. Field (2000); “Social Capital: A Review and Critique” in: Schuller, T., S. Baron , J. Field, Social Capital - Critical Perspectives, New York, Oxford University Press, pp. 1-38
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- Sombart, W. (2001), The Jews and Modern Capitalism, Kitchener, Ontario, Batoche Books.
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Mezhepsel Bölünme ve Çeşitliliklerin Kurumsal ve İktisadi Belirleyicileri
Year 2017,
Volume: 25 Issue: 33, 127 - 144, 31.07.2017
Mehmet Karacuka
,
Martin Leroch
Abstract
Bu çalışma özellikle psikoloji ve sosyoloji tarafından incelenmekte olan dinsel bölünme konusuna iktisadi bir açıklama getirmeyi amaçlamaktadır. Bu çalışmanın temel argümanı dinsel grupların aynı zamanda üyeler arasında bir sosyal ağ olarak görülmesidir. Bu ağlar, üyeler arasında ve üyelerle ilgili bilgi paylaşımını kolaylaştırmaktadır. Modern ekonomi işlemlerin ve işlem yapılan tarafların hızla arttığı bununla beraber işlem maliyetlerinin de yükseldiği bir seyir izlemektedir. İşlem maliyetlerinde minimizasyon için bu grupların bölünmesi daha rasyonel olabilmektedir. Günümüzde daha katı dinsel grupların daah popular olması ve gevşek grupların üye kaybetmesinin bir açıklaması da budur. Tarihsel ve ampirik bulgular bu hipotezi desteklemektedir. Çalışmanın bulgularına göre gelir ve eğitim düzeyi ile birlikte dinsel bölümlenme artmaktadır. Ayrıca girişimci sayısındaki artışla da bu bölünmenin arttığı görülmektedir. Çalışan sayısı ile bölünme arasında bulunun negative ilişki ise çalışanların daha çok büyük grupları tercih ettiğine işaret etmektedir.
References
- Adler, P. S. (2001), “Market Hierarchy and Trust: The Knowledge Economy and the Future of Capitalism”, Organization Science 12, No. 2, pp. 215-234.
- Akerlof, G. A. (1997), “Social Distance and Social Decisions’’, Econometrica 65, pp. 1005–1027.
- American Religion Data Archive, “Churches and Church Membership in the United States”,
- www.thearda.com
- Alesina, A., A. Devleeschauwer, W. Easterly, S. Kurlat, R. Wacziarg (2002), “Fractionalization”, NBER Working Paper Nr. 9411
- Alesina, A., A. Devleeschauwer, W. Easterly, S. Kurlat, R. Wacziarg (2003), “Fractionalization”, Journal of Economic Growth 8, pp. 155-194
- Ansell, C. (2000), “The Networked Polity: Regional Development in Western Europe”, Governance: An International Journal of Policy and Administration 13, No. 3, pp. 303-330.
- Bowles, S., H. Gintis (2004), “Persisting parochialism: trust and exclusion in ethnic networks”, Journal of Economic Behavior & Organization 55, pp. 1-23.
- Carpenter, Jeffrey P., (2004) “Punishing Free-Riders: how group size affects mutual monitoring and the provision of public goods”, IZA Discussion Papers 1337, , Institute for the Study of Labor (IZA).
- Clark, S. D. (1946), “The Religious Sect in Canadian Economic Development”, The Canadian Journal of Economics and Political Science 12, No. 4, pp. 439-453.
- Clark, S. D. (1947), “Religion: The Religious Factor in Canadian Economic Development” The Journal of Economic History 7, Supplement: Economic Growth: A Symposium, pp. 89-103.
- Clark, S. D. (1951), “Religion and Economic Backward Areas” The American Economic Review 41, No. 2, Papers and Proceedings of the Sixty-third Annual Meeting of the American Economic Association, pp. 258-265.
- Delacroix, J. (1992), “A Critical Empirical Test of the Common Interpretation of the Protestant Ethic and the Spirit of Capitalism.” Paper presented at meetings of Int. Assoc. Business & Society in Leuven, Belgium.
- Delacroix, J. (1995), “Religion and Economic Action: The Protestant Ethic, the Rise of Capitalism, and the Abuses of Scholarship,” Journal of the Scientific Study of Religion Vol. 34, No. 1, pp. 126–27.
- Eisenstadt, S. N. (1968), The Protestant Ethic and Modernization: A Comparative
- View. New York, Basic Books.
- Gardner, H. (1917), “Cooperation among the Mormons”, The Quarterly Journal of Economics 31, No.3, pp. 461-499.
- Greif, A. (1989), “Reputation and Coalitions in Medieval Trade:The Evidence on the Maghribi Traders” The Journal of Economic History 49, No. 4, pp. 857-882.
- Greif, A. (1992), “Institutions and International Trade: Lessons from the Commercial Revolution” American Economic Review 82, No. 2, Papers and Proceedings of the Hundred and Fourth Annual Meeting of the American Economic Association, pp. 128-133.
- Greif, A. (1993), “Contract Enforceability and Economic Institutions in Early Trade:The Maghribi Traders’ Coalition” The American Economic Review 83, No. 3, pp. 525-548.
- Greif, A. (1994), “Cultural Beliefs and the Organization of Society: A Historical and Theoretical Reflection on Collectivist and Individualist Societies”, Journal of Political Economy 102, No. 5, pp. 912-950.
- Guiso, L., S. Paola, L. Zingales (2002), “People’s Opium? Religion and Economic Attitudes”, NBER Working Paper No. 9237.
- Hadaway, C. K., P. L. Marler (1996), “ Response to Iannaccone: Is There a Method to this Madness?”, Journal for the Scientific Study of Religion 35, Nr. 3, 217-222.
- Hexham, I., K. Poewe (2000), “Psychological Aspects of Conversion: The Individual in Crisis”, in: Hexham, I., K. Poewe “Understanding Cults and New Age Religions”, online edition.
- http://www.ucalgary.ca/~nurelweb/books/ucnr/ucnr-intro.html
- Hoge, D. R. (1996), “Response to Iannaccone: Three Important Clarifications”, Journal for the Scientific Study of Religion 35, Nr. 3, 223-225.
- Iannaccone, L. R. (1996 a), “Reassessing Church Growth: Statistical Pitfalls and their Consequences”, Journal for the Scientific Study of Religion 35, Nr. 3, 197-216.
- Iannaccone, L. R. (1996 b), “Rejoinder to Hage, Hadaway, and Marler: Pitfalls Revisited”, Journal for the Scientific Study of Religion 35, Nr. 3, 226-228.
- Iannaccone, L. R. (1998), “Introduction to the Economics of Religion“, Journal of Economic Literature 36, pp. 1465-1496.
- Iannaccone, L. R. (2000), “Religious Extremism: Origins and Consequences”, Contemporary Jewry 20, pp. 8-29.
- Isaac R. M., J. M. Walker (1988), “Group Size Effects in Public Good Provision: The Voluntary Contributions Mechanism” The Quarterly Journal of Economics 103, No. 1, pp. 179-199.
- Irons W. (1996), “Morality, Religion, and Human Nature”, in Richardson W.M., W. Wildman (eds.), Religion and Science: History, Method, and Dialogue, New York, Routledge, pp. 375–400
- Knight, J., L.Y. Yueh (2002), “The Role of Social Capital in the Labour Market in China”, University of Oxford, Department of Economics, Discussion Paper Nr. 121.
- Kranton, R. (1996), “Reciprocal Exchange: A Self-Sustaining System”, The American Economic Review 86, No. 4, pp. 830-851.
- La Porta, R., F. Lopez-de-Silanes, A. Schleifer, R. Vishny (1997), “Trust in Large Organizations”, The American Economic Review 87, No. 2, pp. 333-338.
- La Porta, R., F. Lopez-de-Silanes, A. Schleifer, R. Vishny (1999), “The Quality of Government”, Journal of Law, Economics and Organization 15, No. 1, pp. 222-27.
- Liebman, R. C., J.R. Sutton, R. Wuthnow (1988), “Exploring the Social Sources of Denominationalism: Schisms in American Protestant Denominations, 1890-1980”, American Sociological Review 53, No. 3, pp. 343-352.
- Marx, Karl. (1975), “Contribution to Critique of Hegel's Philosophy of Law: Introduction”
- Karl Marx, Frederick Engels Collected Works: Vol. III, pp. 184-5.
- Morris, D. M. (1967), “Values as an Obstacle to Economic Growth in South Asia: An Historical Survey”, The Journal of Economic History 27, No.4, pp. 588-607.
- Narayan, D. (1999), “Bonding and Bridging – Social Capital and Poverty”, World Bank, Policy Research Working Paper 2167.
- Niebuhr, R.H. (1965), The Social Sources of Denominationalism, Ninth printing, Cleveland, Meridian Books.
- North, D.C. (1971), “Institutional Change and Economic Growth”, The Journal of Economic History 31, No.1, pp.118-125.
- North, D.C. (1984), “Government and the Cost of Exchange in History”, The Journal of Economic History 44, No. 2, pp. 255-264.
- North, D.C. (1991), “Institutions”, The Journal of Economic Perspectives 5, No. 1, pp. 97-112.
- North, D.C. (1994), “Economic Performance Through Time”, The American Economic Review 84, No.3, pp. 359-368.
- Putnam, R. (1993), Making Democracy Work: Civic Traditions in Modern Italy. Princeton, Princeton University Press,.
- Putnam, R. (1995), “Bowling Alone: America’s Declining Social Capital”, Journal of Democracy 6 I, pp. 65-78. http://xroads.virginia.edu/~HYPER/DETOC/assoc/bowling.html
- Robertson, H.M. (1935), Aspects of the Rise of Economic Individualism: A Critique of Max Weber and his School, Cambridge UK, Cambridge University Press.
- Schaefer, H.-B. C. Ott (2004), The Economic Analysis of Civil Law. London, Edward Elgar.
- Schlicht, E. (1998), On Custom in the Economy, Oxford, Clarendon Press.
- Schuller, T., S. Baron , J. Field (2000); “Social Capital: A Review and Critique” in: Schuller, T., S. Baron , J. Field, Social Capital - Critical Perspectives, New York, Oxford University Press, pp. 1-38
- Smith, A. (1979), An Inquiry into the Nature and Causes of the Wealth of Nations, R.H. Campbell, A.S. Skinner, W.B. Todd (eds). Clarendon, Oxford.
- Smith, A. (2002), The Theory of Moral Sentiments, Cambridge University Press, Cambridge.
- Sombart, W. (2001), The Jews and Modern Capitalism, Kitchener, Ontario, Batoche Books.
- Spilka, B., R. W. Jr. Hood, R. Gorsuch (1985), The Psychology of Religion, New Jersey, Prentice Hill.
- Spilka, B., R. W. Jr. Hood, B. Husberger, R. Gorsuch (2003), The Psychology of Religion: An Empirical Approach, New York, The Guilford Press.
- Sutton, J.R., M. Chaves (2004), “Explaining Schism in American Protestant Denominations, 1890-1990”, Journal for the Scientific Study of Religion 43, No. 2, pp. 171-190.
- Swann, G. M. P. (2002), “The functional form of network effects”, Information Economics and Policy, 14, pp. 417-429.
- Taylor, P.A.M., L.J. Arrington (1958), “Religion and Planning in the Far West: The First Generations of Mormons in Utah”, The Economic History Review, New Series 11, No. 1, pp. 71-86.
- Uppal, J. S. (1986), “Hinduism and Economic Development in South Asia,” International Journal of Social Economics 13, No. 3, pp.20–33.
- Wagner III, J.A. (1995), “Studies of Individualism-Collectivism: Effects on Cooperation in Groups” The Academy of Management Journal 38, No.1, pp. 152-172.
- Walker, P.C.G. (1937), “Capitalism and Reformation”, The Economic History Review 8, No. 1, pp. 1-19.
- Weber, M. (1905), The Protestant Ethic and The Spirit of Capitalism, London, Unwin University Books.