Special thanks to Masao Ogaki who invited us to explore these ideas. We are also grateful for comments provided by an anonymous referee and Birendra K. Rai. Martha Gaustad and Richard Manning revised the English grammar. Financial support from MCI (SEJ2007-62081/ECON) and Excelencia-Junta (P07-SEJ-02547) is acknowledged.
Individual's Religiosity Enhances Trust: Latin American Evidence for the Puzzle
Article first published online: 25 MAR 2009
© 2009 The Ohio State University
Journal of Money, Credit and Banking
Volume 41, Issue 2-3, pages 555–566, March-April 2009
How to Cite
BRAÑAS-GARZA, P., ROSSI, M. and ZACLICEVER, D. (2009), Individual's Religiosity Enhances Trust: Latin American Evidence for the Puzzle. Journal of Money, Credit and Banking, 41: 555–566. doi: 10.1111/j.1538-4616.2009.00222.x
- Issue published online: 25 MAR 2009
- Article first published online: 25 MAR 2009
- Received May 8, 2006; and accepted in revised form December 19, 2007.
- economic behavior;
- religious practice;
This paper explores the effect of religious observance and affiliation to the dominant religion (Catholicism) on trust in institutions and toward others, and market attitudes. The analysis is performed using a Latin American database of 20,000 respondents from 2004 by means of ordered probit models. The most interesting results are:
- (i) Trust toward others is positively correlated with both religious observance and Catholic affiliation (and practice).
- (ii) There is a positive correlation between trust in the government, in the police, in the armed forces, in the judiciary and in the banking system and religious practice in general. Identical positive findings are obtained for Catholic affiliation and practice, although they may be affected by a majority effect.
Moreover, there is no evidence to support the hypotheses of a negative effect of religion on social capital.