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Does Religion Affect Economic Growth and Happiness? Evidence from Ramadan

TLDR
In this article, the economic effects of religious practices in the context of the observance of Ramadan fasting, one of the central tenets of Islam, have been studied, and the results indicate that religious practices can affect labor supply choices in ways that have negative implications for economic performance, but that nevertheless increase subjective well-being among followers.
Abstract
We study the economic effects of religious practices in the context of the observance of Ramadan fasting, one of the central tenets of Islam To establish causality, we exploit variation in the length of the fasting period due to the rotating Islamic calendar We report two key, quantitatively meaningful results: 1) longer Ramadan fasting has a negative effect on output growth in Muslim countries, and 2) it increases subjective well-being among Muslims We then examine labor market outcomes, and find that these results cannot be primarily explained by a direct reduction in labor productivity due to fasting Instead, the evidence indicates that Ramadan affects Muslims' relative preferences regarding work and religiosity, suggesting that the mechanism operates at least partly by changing beliefs and values that influence labor supply and occupational choices beyond the month of Ramadan itself Together, our results indicate that religious practices can affect labor supply choices in ways that have negative implications for economic performance, but that nevertheless increase subjective well-being among followers

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Religious Practice and Student Performance: Evidence from Ramadan Fasting

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How religious affect economic activity?

Religious practices, such as the observance of Ramadan fasting, can affect labor supply choices and have negative implications for economic performance but increase subjective well-being among followers.