Development and Religious Polarization: The Emergence of Reform and Ultra-Orthodox Judaism

Jean-Paul Carvalho and Mark Koyama

No 560, Economics Series Working Papers from University of Oxford, Department of Economics

Abstract: Jewish emancipation in nineteenth century Europe produced drastically different responses. In Germany, a liberal variant known as Reform developed, while ultra-Orthodox Judaism emerged in eastern Europe. We develop a model of religious organization which explains this polarization. In developed regions, religious authorities embrace the prospect of cultural integration by relaxing probhibitions and benfitting from greater financial contributions. In poorer regions, religious authorities adopt a strategy of cultural resistance, enforcing prohibitions to elicit greater contributions of effort. In regions of intermediate development, religious schisms and cycles occur. This analytic narrative sheds light on how economic development can lead to cultural change.

Keywords: Club goods; Religious polarization; Community; Jewish emancipation (search for similar items in EconPapers)
JEL-codes: D23 J24 N33 Z12 (search for similar items in EconPapers)
Date: 2011-07-01
New Economics Papers: this item is included in nep-evo and nep-his
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Citations: View citations in EconPapers (9)

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