Formation-of-Religious-Beliefs-and-Preferences
The chapter by Jean‑Paul Carvalho and Michael McBride surveys two dominant economic approaches to modeling religion – the religious‑capital (individual‑level, intensive‑margin) framework and the cultural‑transmission (population‑level, extensive‑margin) framework – and demonstrates that they are deeply connected. The authors first critique standard economic models for assuming fixed preferences and purely instrumental beliefs, then review the religious‑capital literature (originating from Becker’s household‑production and Iannaccone’s rational‑addiction style model) and present a simple two‑period formalization that captures how current religious participation builds future religious capital. Next, they outline the Bisin‑Verdier cultural‑transmission model, derive its continuous‑time dynamics, and show how endogenous parental socialization effort generates a polymorphic steady‑state. A comparative table highlights conceptual differences (focus, unit of time, investment type, trait space). The authors argue that these differences are matters of emphasis rather than substance, noting that religious capital can be socially transmitted. Building on this insight, they propose a unified model that adds individual post‑transmission investment in religious capital to the Bisin‑Verdier framework. The unified model yields new equilibrium payoffs (V_i) and a modified steady‑state share of traits (q), captured in Proposition 2 and two corollaries that illustrate how endogenous capital investment expands religious diversity beyond what parental socialization alone predicts. The chapter concludes by emphasizing the complementary nature of the two literatures, suggesting policy levers (e.g., privileging certain traits) and outlining avenues for future research such as multi‑trait extensions and applications to secularization. Throughout, the authors blend formal economic modeling with extensive literature citations, positioning the unified approach as a bridge between micro‑level preference dynamics and macro‑level cultural evolution.
Topics
Religious Capital Approach: Formal Two‑Period Model
Presents a concise rational‑addiction style model where individuals choose religious participation (x_t), build religious capital (λ_t), and face depreciation (d). Derives optimal participation rules, discusses parameter effects, and lists empirical predictions (e.g., inter‑generational transmission, switching patterns).
Cultural Transmission Approach: Bisin‑Verdier Dynamic Model
Describes the vertical and oblique transmission mechanism, defines transmission probabilities (τ_i), derives continuous‑time dynamics (dot q), and shows how endogenous parental socialization effort (τ_i^*) leads to a polymorphic steady‑state (q* = Δ_a/(Δ_a+Δ_b)). Includes Proposition 1.
Comparative Analysis of the Two Approaches
Provides a side‑by‑side comparison (Table 1) of focus, margin, level of analysis, time unit, investment type, frequency, and trait space, and argues that differences are largely emphatic, not fundamental.
Unified Model: Merging Parental Socialization with Individual Capital Investment
Extends the Bisin‑Verdier framework by introducing post‑transmission individual investment in religious capital (V_i = σΔ_i + (1‑σ)λ_i x_i – ½x_i^2). Derives optimal participation (x_i^*), equilibrium payoffs (V_i^*), and a new steady‑state share (q**). Presents Proposition 2 and two corollaries showing how endogenous capital amplifies diversity.