Is Religion an Inferior Good? Evidence from Fluctuations in Housing Wealth

Luc Laeven, Alexander Popov and Clara Sievert

No 18671, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: An increase in local house prices in the US is associated with a decline in time spent on religious activities for homeowners relative to renters. This effect is not present for volunteering and civic activities. The decline in religious activities is stronger for credit constrained households. The main result is driven by a wealth effect, whereby activities that have an inferior-good component decline with housing wealth, and by a substitution effect whereby the attractiveness of activities linked to the residential asset increases during housing booms.

Keywords: Home; ownership (search for similar items in EconPapers)
JEL-codes: E21 J22 O18 R2 Z12 (search for similar items in EconPapers)
Date: 2023-12
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Journal Article: Is religion an inferior good? Evidence from fluctuations in housing wealth (2024)
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