An Economic Theory of Salvation Religions

Abstract

Many salvation religions promise that they can provide perfect internal immunity to their followers against all sufferings. By formalizing their salvation promises, we construct a unified model to micro-found the three major types from Max Weber's typology of world religions, "mystic religions," "activist religions," and "religions of world adjustment." The unified model explains why only mystic religions and activist religions can offer credible promises of salvation, but not religions of world adjustment. The model further explains numerous puzzles about various world religions. Among others, the model sheds light on why an activist religion is more likely to support rule of law, much more than a mystic or world-adjusting religion.