Religion and economics; a theoretical approach

Influence of the religion on daily economical life of men plays an important role while researching the relation between religion and economy. Both religion and economy is a place of where people shift their ideas and their manners that creates life. Religion is such a kind of artificial differentiated good which was manufactured by reverends and religious institution in a competitive market and consumed by the members of a group who believe in this. Religion market is a kind of market where these societies search for resources and members to survive in this sector, we the suppliers find this easy to perform they are also forced to deal with externality, free-riders. Demand way of religion can expalined by The theory of human capital, Rational choice theory and Household production model. Religion demanders have to be willing to pay the costs that are carried out by the strict religion or religious clubs by making sacrifice and stigma themselves in order to consume the club properties and continue their memberships. This type of sacrifice expectations have role on decreasing the free-riders. Aim of the research is to examine the relationship between religion and economy in a theoretical approach. Max Weber's pioneering research in the advanced stages of the study in the light, the Western Christian countries are economically advanced levels, in most Muslim countries back while maintaining the economic developments that examined the role of religion, religious diversity is concluded that this result is not the only factor conveys.