It's a Sin - Contraceptive Use, Religious Beliefs, and Long-Run Economic Development

Discussion Papers on Business and Economics, University of Southern Denmark, 11/2014

27 Pages Posted: 27 Jul 2014

See all articles by Klaus Prettner

Klaus Prettner

Vienna University of Economics and Business - Department of Economics

Holger Strulik

University of Goettingen (Göttingen) - School of Law, Economics, Social Sciences

Date Written: July 11, 2014

Abstract

This study presents a novel theory on the interaction of social norms, fertility, education, and their joint impact on long-run economic development. The theory takes into account that sexual intercourse is utility enhancing and that the use of modern contraceptives potentially conflicts with prevailing social norms (religious beliefs). The theory motivates the existence of two steady states. At the traditional steady state, the economy stagnates, fertility is high, education is minimal, and the population sustains a norm according to which modern contraceptives are not used. At the modern steady state, the population has abandoned traditional beliefs, modern contraceptives are used, fertility is low and education and economic growth are high. Social dynamics explain why both equilibria are separated by a saddlepoint-equilibrium (a separatrix), i.e. why it is so hard to transit from the traditional regime to the modern regime. Enhancing the value of education is identified as a promising policy to encourage contraceptive use and to initiate the take-off to long-run growth.

Keywords: Religion, fertility, sex, contraceptive use, education, economic growth

JEL Classification: O40, I25, J10, Z12

Suggested Citation

Prettner, Klaus and Strulik, Holger, It's a Sin - Contraceptive Use, Religious Beliefs, and Long-Run Economic Development (July 11, 2014). Discussion Papers on Business and Economics, University of Southern Denmark, 11/2014, Available at SSRN: https://ssrn.com/abstract=2464993 or http://dx.doi.org/10.2139/ssrn.2464993

Klaus Prettner (Contact Author)

Vienna University of Economics and Business - Department of Economics ( email )

Augasse 2-6
A-1090 Wien
Austria

Holger Strulik

University of Goettingen (Göttingen) - School of Law, Economics, Social Sciences ( email )

Germany

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