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  • While economics has long recognized the importance of the institutional settings in which decisions are made, it has neglected to give much attention to religion, the most pervasive institution of all. Yet religion continues to strongly influence the decisions of individuals, governments, and religious 'firms' throughout the world. Intended as a tool for researchers, the first chapter of this dissertation examines the current literature, using Iannaccone's 1998 survey as its base. After a brief introduction to the scientific study of religion, I focus on current contributions to this growing subfield. I also explore the most fertile opportunities and methods open to economists interested in furthering our understanding of religion's effects. The second and third chapters focus on largely overlooked areas for research. Chapter two examines the connection between political capitals and spiritual capitals. Places that acquire spiritual significance, becoming sacred capitals, can powerfully influence the secular institutions with which they interact. I examine the factors by which ordinary places are elevated to sacred status and how such places shape secular outcomes. In particular, I use economic theory and analysis of historical data to explore the circumstances surrounding the rise and fall of the Delphic Oracle. Chapter three examines the role of religion in exchange. Religious affiliation can sometimes serve as a proxy for reputation or a means of insuring the enforcement of exchange agreements. These reputation and enforcement mechanisms enhance the ability of the members to perform economic roles where strictly secular mechanisms are absent or ineffective. I show that the hostility directed toward high-tension religions makes their members well-suited for the role of economic middlemen. In particular, I explore the case of the 19th century Jewish peddlers in the United States. (xsd:string)
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