ecn410final_waterswiltbank

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Page 1: ECN410Final_WatersWiltbank

WILL PRAY FOR WORK:HOW THE ECONOMY AFFECTS RELIGIOUS ACTIVITY

Nathan Waters & James Wiltbank

Page 2: ECN410Final_WatersWiltbank

O U R D A T A • Panel Data• Variables

• Year: the year (2003 – 2013)• Statefip: 50 states & District of Columbia• Relact*: Minutes per day spent on religious

activities• Unem: State unemployment rate (%) for

corresponding year• Gdpgrowth: Percentage change in state GDP

from previous year

*Religious and spiritual activities. Religious activities include those normally associated with membership in or identification with specific religions or denominations, such as attending religious services; participating in choirs, youth groups, orchestras, or unpaid teaching (unless identified as volunteer activities); and engaging in personal religious practices, such as praying.

Page 3: ECN410Final_WatersWiltbank

O U R M O D E L

(relactt) = β0 – β1(gdpgrowtht) + β2(unemt) + ei

• Considered:

Log Variables

Lag Variables

Detrend

Page 4: ECN410Final_WatersWiltbank

(relactt) = 9.5918 + .0318(gdpgrowtht) + .4648(unemt) + ei

O U R R E S U L T S

• Unem: For every 1% increase in the unemployment rate; Time spent on religious activities increases by .46 minutes/day holding all else constant

• GDPgrowth: For every 1% of growth in GDP from the previous year; Time spent on religious activities increases by .03 minutes/day holding all else constant

• P>|t| 0.764 > 0.05• Not significant at the 95% level

Page 5: ECN410Final_WatersWiltbank

D I A G N O S T I C T E S T S

Page 6: ECN410Final_WatersWiltbank

D I A G N O S T I C T E S T S C O N T .

-10

010

2030

Res

idua

ls

0 10 20 30 40(mean) relact