Individual's Religiosity Enhances Trust: Latin American Evidence for the Puzzle

Posted: 25 May 2008

See all articles by Maximo Rossi

Maximo Rossi

Departamento de Economía, dECON; Universidad de la Republica - Department of Economics

Dayna Zaclicever

University of the Republic, Uruguay - Department of Economics - School of Social Sciences

Pablo Brañas-Garza

Universidad Loyola Andalucia

Abstract

This paper explores the effect of religious observance and affiliation to the dominant religion (Catholicism) on trust in institutions, towards others and market attitudes. The analysis is performed using a Latin American database of twenty thousand respondents from 2004 by means of ordered probit models. The most interesting results are: i) Trust toward others is positively correlated with religious observance and with Catholic affiliation. 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 results are obtained for Catholic affiliation. iii) Correlations with attitudes toward the market, in general, are heterogeneous but never negative. In sum, individual's level of religiosity crucially affects trust in institutions and toward peers. We also found that Catholicism encourages both trust in institutions and towards others. Thus, we found a positive effect of "religiosity" on social capital. In fact, we never found any negative (and significant) effect on the variables considered.

Keywords: trust in institutions, economic behavior, religious practise

JEL Classification: Z12, Z13

Suggested Citation

Rossi, Maximo and Zaclicever, Dayna and Brañas-Garza, Pablo, Individual's Religiosity Enhances Trust: Latin American Evidence for the Puzzle. Journal of Money, Credit, and Banking, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1137174

Maximo Rossi (Contact Author)

Departamento de Economía, dECON ( email )

Facultad de Ciencias Sociales
Jose E. Rodo 1854
Montevideo 11200, 11200
Uruguay
59824106449 (Phone)
59824106450 (Fax)

HOME PAGE: http://Http://www.decon.edu.uy/~mito

Universidad de la Republica - Department of Economics ( email )

Constituyente 1502 Piso 6º
Montevideo, 11200
Uruguay
+598 2 4106449 (Phone)
+598 2 4106450 (Fax)

HOME PAGE: http://decon.edu.uy/~mito/pagina

Dayna Zaclicever

University of the Republic, Uruguay - Department of Economics - School of Social Sciences ( email )

Constituyente 1502 - Floor 6
Montevideo, 11200
Uruguay

Pablo Brañas-Garza

Universidad Loyola Andalucia ( email )

c/ Escritor Castilla Aguayo
Córdoba, 14004
Spain

HOME PAGE: http://https://sites.google.com/site/pablobranasgarza/home

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