Forbidden Fruits: The Political Economy of Science, Religion, and Growth

Abstract We study the co-evolution of religion, science, and politics. first uncover, in international U.S. data, a robust negative relationship between religiosity patents per capita. The model then combines: (1) scientific discoveries that raise productivity but sometimes erode religious beliefs; (2) government allows innovations to diffuse, or blocks them; (3) institutions can invest doctrinal reform. Three long-term outcomes emerge. “Western-European Secularization” regime has declining religiosity, unimpeded high taxes transfers. “Theocratic” involves knowledge stagnation, unquestioned dogma, religious-public-goods spending. “American” combines progress stable through adaptations, with low some fiscal-legal advantages for activities. Rising income inequality can, however, empower Religious-Right alliance starts blocking belief-eroding ideas.