Nov 15, 2022
Religion is a deep source of tradition and meaning for many people around the world, especially those in developing countries. But religious practices can sometimes stand in the way of long-term economic growth, according to a paper in the American Economic Review.
Authors Eduardo Montero and Dean Yang found that ill-timed patron saint day festivals in Mexico lead to lower levels of development. In particular, celebrations coinciding with important agricultural seasons lowered household incomes, over the course of centuries, by roughly 20 percent.
But that doesn’t necessarily mean these festivals made people worse off overall. Montero and Yang say that it’s up to communities and their leaders to decide what the right balance is between cultural traditions and economic growth.
The authors recently spoke with Tyler Smith about patron saint day festivals and why they hampered long-run economic development in Mexico.