Two instrumental variables that we use in our study of economic growth are
dummy variables for the existence of a state religion and the existence of a regulated
market structure, whereby the government approves or appoints church leaders. In some
of the analysis, we also use as instruments the composition of a country’s population
across the main religions among the population that adheres to some religion. We also
use as an instrument a measure of religious diversity constructed from the data on
religious adherence.