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NBER WORKING PAPER SERIES
RELIGION, LONGEVITY, AND COOPERATION:THE CASE OF THE CRAFT GUILD.
Gary RichardsonMichael McBride
Working Paper 14004http://www.nber.org/papers/w14004
NATIONAL BUREAU OF ECONOMIC RESEARCH1050 Massachusetts Avenue
Cambridge, MA 02138May 2008
We thank participants in workshops UC Irvine, Stanford University, and George Mason Universityas well as participants in the Spiritual Capital, German Cliometrics, ASREC, and Western EconomicsAssociation conferences for comments, advice, and encouragement. The views expressed herein arethose of the author(s) and do not necessarily reflect the views of the National Bureau of EconomicResearch.
NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies officialNBER publications.
© 2008 by Gary Richardson and Michael McBride. All rights reserved. Short sections of text, notto exceed two paragraphs, may be quoted without explicit permission provided that full credit, including© notice, is given to the source.
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Religion, Longevity, and Cooperation: The Case of the Craft Guild.Gary Richardson and Michael McBrideNBER Working Paper No. 14004May 2008JEL No. D02,D43,L1,L15,L2,L22,L23,N34,N64,N74,N84,N94,Z12
ABSTRACT
When the mortality rate is high, repeated interaction alone may not sustain cooperation, and religionmay play an important role in shaping economic institutions. This insight explains why during thefourteenth century, when plagues decimated populations and the church promoted the doctrine of purgatory,guilds that bundled together religious and occupational activities dominated manufacturing and commerce.During the sixteenth century, the disease environment eased, and the Reformation dispelled the doctrineof purgatory, necessitating the development of new methods of organizing industry. The logic underlyingthis conclusion has implications for the study of institutions, economics, and religion throughout historyand in the developing world today.
Gary RichardsonDepartment of EconomicsUniversity of California, IrvineIrvine, CA 92697-5100and [email protected]
Michael McBride3151 Social Science PlazaUniversity of CaliforniaIrvine, CA [email protected]
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Figure 1Exogenous Forces, Mortality and Acceptance of Purgatory during the Later Middle Ages
Before 1250 After 1550
1250 to 1350
1400 to 1525
1350 to 1400
Acc
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of P
urga
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Figure 2: Equilibrium Conditions for Occupational, Intercessory, and Combined Cooperatives
(a) Occupational Cooperation
(b) Intercessory Cooperation
(c) Combined Cooperation
Less
More
Val
ue o
f Po
stm
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ayer
s, v
it(n
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Figure 3: Equilbrium Conditions for Three Types of Cooperation
Figure 4: The Evolution of Cooperation in Late Medieval England
Val
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s,v i
t(nf
)V
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nf)
Mortality Rate, mLow
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v*Separateor Combined
No OrganizationsOccupational
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v* *
Separate
Intercessory
Mortality Rate, mLow
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Highm*