Club Goods and Group Identity: Evidence from Islamic Resurgence during the Indonesian Financial Crisis
Open accessAbstract
This paper tests a model in which group identity in the form of religious intensity functions as ex post insurance. I exploit relative price shocks induced by the Indonesian financial crisis to demonstrate a causal relationship between economic distress and religious intensity (Koran study and Islamic school attendance) that is weaker for other forms of group identity. Consistent with ex post insurance, credit availability reduces the effect of economic distress on religious intensity, religious intensity alleviates credit constraints, and religious institutions smooth consumption shocks across households and within households, particularly for those who were less religious before the crisis.
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During crisis, religious community support may extend to financial insurance.
“During crisis, religious community support may extend to financial insurance [67].”
From Faith after an Earthquake: A Longitudinal Study of Religion and Perceived Health before and after the 2011 Christchurch New Zealand Earthquake (2012) · cites this paper as [67]
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Acts of God? Religiosity and Natural Disasters Across Subnational World Districts*
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- Authors
- Chen, D. L.
- Affiliations
- University of Chicago (US)
- Corresponding author
- Chen, Daniel L.
- ORCID
- Chen, Daniel L.
- Venue
- Journal of Political Economy
- Publisher
- University of Chicago Press
- Published
- 2010-04
- Volume
- 118
- Issue
- 2
- Pages
- 300-354
- ISSN
- 0022-3808 (ISSN-L)
- 1537-534X
- OpenAlex
- W2136320642
- Cited by
- 299
- References
- 7
- Citations by year
- 2026: 10 · 2025: 22 · 2024: 17 · 2023: 16 · 2022: 23 · 2021: 38 · 2020: 20 · 2019: 11 · 2018: 21 · 2017: 30 · 2016: 14 · 2015: 7 · 2014: 15 · 2013: 15 · 2012: 6
- FWCI
- 33.47
- Type
- journal article
- Language
- en
- Open access
- Locations
- Journal of Political Economy (publishedVersion)
- Duke Law Scholarship Repository (Duke University) (submittedVersion)
- SSRN Electronic Journal (submittedVersion)
- Funders
- National Science Foundation
- John D. and Catherine T. MacArthur Foundation
- Sage Foundation
- Massachusetts Institute of Technology
- National Institute of Child Health and Human Development
- Topics
- Social Sciences › Demography › Culture, Economy, and Development Studies
- Social Sciences › Business, Management and Accounting › Accounting › Islamic Finance and Banking Studies
- Social Sciences › Sociology and Political Science › Religion, Society, and Development
- Keywords
- club goods, group identity, religious intensity, Islamic revivalism, Indonesian financial crisis, religious organizations, credit constraints, consumption smoothing, religious schools, economic hardship, household consumption
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