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RELIGIOUS FESTIVALS AND ECONOMIC DEVELOPMENT: EVIDENCE FROM THE TIMING OF MEXICAN SAINT DAY FESTIVALS
1Harris School of Public Policy, University of Chicago, 1307 E 60th St, Chicago, IL 60637.
American Economic Review. Insights
|March 29, 2024
Summary
Religious festival timing impacts economic development. Festivals coinciding with peak agricultural seasons negatively affect household income and long-term development, potentially due to reduced agricultural productivity.
Area of Science:
- Economics
- Sociology
- Religious Studies
Background:
- Religious festivals are significant cultural events with potential economic implications.
- The timing of festivals relative to economic activities, such as agriculture, may influence their impact.
- Understanding these economic consequences is crucial for regional development strategies.
Purpose of the Study:
- To investigate the economic consequences of the timing of Catholic patron saint day festivals in Mexico.
- To determine if festivals coinciding with critical agricultural periods affect long-run economic development.
Main Methods:
- Utilizing cross-locality variation in festival dates and agricultural seasons for causal identification.
- Estimating the impact of agriculturally-coinciding festivals on long-term economic development outcomes.
- Analyzing the relationship between festival timing, agricultural productivity, and structural transformation.
Main Results:
- Festivals coinciding with peak agricultural planting or harvest months are associated with lower household income.
- Agriculturally-coinciding festivals negatively impact overall long-run economic development.
- These negative economic effects appear linked to reduced agricultural productivity, hindering a shift away from agriculture.
Conclusions:
- The timing of religious festivals, particularly their coincidence with agricultural seasons, has significant negative economic consequences.
- While detrimental to economic development, these festivals may persist due to their positive effects on religiosity and social capital.
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