Does Wealth Imply Secularization and Longevity?

We develop a simple life cycle model with endogenous longevity where religious firms influence religious beliefs using donations as an input. The model suggests that either wealth and economic development or competition by religious firms can explain cross-country variation in religious beliefs, but to explain cross-country variation in religious beliefs, longevity, and consumption both development and competition are required. Our results depend on the wealth and substitution effects that accompany economic development and religious market competition. Copyright (c) 2010 The Ohio State University.