Faith and growth: modeling the influence of religion on Madagascar’s economy with DEOS model

Josué, ANDRIANADY and Andrianavony, Kanto Joviannah (2024): Faith and growth: modeling the influence of religion on Madagascar’s economy with DEOS model. Published in:

Abstract

This paper rigorously examines the influence of religious beliefs on economic development in Madagascar by employing the DEOS (Dynamic Equilibrium of Observed Spirituality) model. Surpassing the inherent limitations of traditional DSGE approaches, the study integrates the spiritual dimension into mechanisms of human capital formation, the structuring of formal and informal sectors, and economic governance. Utilizing a dynamic framework enriched with stochastic shocks, our analysis demonstrates that religion is not merely a source of moral norms but acts as a powerful catalyst for institutional and economic transformation. The findings invite a re-evaluation of public policies to incorporate sociocultural variables essential for a holistic understanding of growth dynamics.

• Item Type: MPRA Paper
• Language: English
• Keywords: Religion, Economic Development, Madagascar, Human Capital, Governance, Informal Sector, Stochastic Modeling, DEOS
• Subjects: A - General Economics and Teaching > A1 - General Economics; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development; Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology; Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z12 - Religion

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