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The statutes of the Bom Jesus brotherhood were revised several times after Peixoto notes that new statutes were required to be passed in and , reflecting the anticlerical legislation produced after the establishment of the First Republic. From a national perspective, the regime change led to hard times within the hierarchy of the Portuguese Catholic Church and other Catholic institutions. According to Fernandes and Rocha , priests were arrested, bishops exiled, and convents closed, and the temporal authority of the Church was eroded by more than 30 anticlerical laws passed during the first year after October 5, Because of these national changes, we expected to note significant differences in the Bom Jesus revenue due to the political changes motivated by the appearance of the First Republic.
We will test these expectations in Section 4. Additionally, we observed that northern Portugal, including the Braga region, was not immune to the social and political transformations taking place in Lisbon and beginning in Ferreira also describes the turmoil arising from the celebrations of the Sacred Heart of Jesus in Braga in May Because the laws of the First Republic prohibited public displays of religious faith, a procession for the celebration of the Sacred Heart was interrupted by anticlerical individuals, leading to street fights.
This change in perspective should also have led to changes in the revenue received by the religious orders and secular brotherhoods in the northern part of the country.
In this case, we are drawing, for instance, on the works of Peacock and Wiseman and Hamilton Synthesizing this economic literature, there are three main reasons why a crisis can explain a breakpoint: Usually, inflation shocks generate not only a decrease in consumer purchasing power, but also a significant break in net household revenue Jinnai, ; Fountas, Several historical episodes providing such evidence are discussed by Hayes and Moiseev This was the economic scenario in post Portugal: Lains shows the divergence of real per capita GDP in Portugal from that of a group of nine industrialized countries between and Therefore, assuming that the Bom Jesus visitors, contributors and customers were so affected, we can expect to have been a year that generated a significant breakpoint in the reported revenue.
According to this evidence, during periods of economic difficulty, believers may also have a higher propensity to increase their demand for religious goods and services, all else remaining constant. However, even in this case, the hypothesis is also favored by the evidence of a statistically significant breakpoint in the Bom Jesus revenue for meaning that this revenue should have consistently increased since What interpretation can we offer if the hypothesis is not supported?
In this case, we could also conclude that the establishment of the First Republic did not give rise to any significant alterations either in the religious beliefs of the Bom Jesus public or in their habits in terms of local visits and pilgrimages. Now, we will test the hypothesis that when the political regime changed from a monarchy to a republic represented a break in the series of the Bom Jesus revenue as illustrated by Figure 1. To test this hypothesis, we will use the appropriate time series techniques to identify the breaks in the next section.
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Empirical section—a study of structural breaks in the revenue of the Bom Jesus brotherhood. First, we will test the hypothesis. Econometricians have already developed appropriate methods for identifying single or multiple breaks in time series Hamilton, , with further significant developments having been made since Given the focus of this study, we intend to briefly introduce the analysis of structural breaks. Here, b t represents the series of yearly revenue collected by Bom Jesus at constant prices. That is, in keeping with Hansen , we first model b t as an autoregressive [ AR n ] process with an n lag, as in equation 1.
We will test for structural breaks in this series by considering two alternative assumptions. Let us first test the year as a probable candidate for a break in b t. Accordingly, we will use a Chow test Baum, Then we estimate the parameters of equation 1 for each sub-period. Finally, we test whether the two sets of parameters are equally recurring, using a classic F- statistic. Table 1 presents the main values associated with the Chow test. Table 1—Chow test of the Bom Jesus revenue with a break in implantation of the Portuguese Republic.
In reviewing Table 1, we cannot reject the null hypothesis that the year marking the implantation of the Portuguese Republic changed the structure of the Bom Jesus revenue. We cannot reject this hypothesis either for the budget revenue series or for the respective yearly changes. However, according to several authors Andrew and Zivot, ; Baum, , the Chow test raises several issues. For instance, what happens in or in ? To address these limitations, we must use tests of unknown dates that analyze all possible breaks.
This test is based on a Dickey-Fuller unit root test. We can test for a trend break or for trend and intercept breaks generated by the break year. After reviewing the values provided in Table 2, we reject the hypothesis that or a year close to this brought significant changes in the Bom Jesus revenue. Depending on the assumptions used in each test specification either intercept and trend changing because of the break or only intercept changing , we obtained four different dates.
Two of those dates and coincided with the previously discussed pre downtrend. This downtrend was recorded for the period when socialist and republican ideas spread across the country, even into northern regions and rural areas. A third possible break was ; observing Figure 1, this date coincides with the beginning of the period during which the Bom Jesus revenue significantly increased for nearly ten years.
The fourth date occurs at the beginning of the period during which we observed another uptrend in the Bom Jesusrevenue, coinciding with the recovery of the privileged relationship of the Catholic Church with the Portuguese government Reis, Therefore, the results of the Andrews and Zivot test do not allow us to pinpoint the official date of the implantation of the Portuguese Republic as marking a structural change in the revenue of secular brotherhoods such as the Bom Jesus one.
Alternatively, these values suggest that the period of political transition from a monarchy to a republic did not significantly change the relevant budgets, placing special emphasis on the moments characterized by the diffusion of republican and socialist ideas or by the recovery of privileges by religious institutions.
However, tests similar to the one developed by Andrews and Zivot are not suited to identifying multiple breaks for instance, in a W-shaped series , which typically occur when time series span several decades. This may be the case for the Bom Jesus revenue series and its respective annual growth rates—which we observed for The critical values are then those provided by Perron and Vogelsang These tests allow for the detection of sudden breaks because of particular moments additive outliers or gradual shifts in the mean of the series innovational outliers.
Tb1 and Tb2 are the breakpoints to be located by grid search i. We obtained these values and Figures 2, 3, 4, and 5, using the Stata commands clemao2 and clemio2.
From Figures 2, 3, and 4, we can easily note that the significance level dropped considerably in the analysis of growth rates. This is a common pattern in series that are stationary at their own growth rates meaning that the successive growth rates are close to their means , but that are not stationary at their original levels. The optimum number of lags included in the AR process following information criteria are shown in parentheses. Table 3 again shows that the year is not a good candidate for a breakpoint in the Bom Jesus revenue.
Adopting a different perspective, we identify four years , , , and as the most probable optimal breakpoints for the logged series. Figures 2 and 3 display these results in the form of a graph.
From Tables 1, 2, and 3, we can argue that the last quarter of the nineteenth century i. Therefore, we were not able to support the explanations of authors such as Ferreira for the behavior of the Bom Jesus revenue series in approximately Instead, the explanations of Carreira were more appropriate for describing the slight oscillations in the Bom Jesus revenue observed during this period.
The Bom Jesus revenue rose for almost a decade beginning in Revisiting the main historical moments identified in sections 2 and 3, this period saw an increase in the population of Braga and its surrounding area because of industrialization and abundant natural resources—see Juncal This was also a time during which the population growth in the Minho region led to an increasing number of visitors to the Bom Jesus complex, many of whom were probably attracted by its structural improvements, namely the completion of the chapels , the improvements to the central lake , and the opening of the funicular The combination of these two positive effects—the novelty effect Peixoto, and the welfare effect Oliveira, —has proved a valid explanation for the empirical results, indicating that the decade after produced statistically significant changes in our series of the Bom Jesus revenue.
After , the Bom Jesus revenue decreased consistently until Alternative breakpoints were especially identified for the growth rates presuming innovational outliers in and As observed in section 3, and according to several authors Catroga, ; Rocha, ; Fernandes, , this period coincides with the first years of the Second Republic, which restored the institutionally privileged relationship of the Portuguese State and the Holy See.
This restoration created a context in which religious institutions even secular brotherhoods stabilized their activities. In the case of Bom Jesus, this led to an increasing trend or a persistence of positive growth in revenue between and In this work, we tested for the presence of structural breaks in the Bom Jesus revenue series, at constant prices, collected by the Bom Jesus de Braga brotherhood, which we observed for the period. Bom Jesus de Braga has been a well-known pilgrimage site in Portugal since the seventeenth century, as well as serving as a starting point for pilgrims and hosting visitors from many countries since the nineteenth century.
Given the radical changes ushered in by the establishment of the First Portuguese Republic, we first tested for the presence of a structural break in the studied series around the year The results of Chow tests conducted in order to evaluate the hypothesis indicate that the establishment of the First Republic changed the path of the Bom Jesus revenue. However, additional tests suggest that other periods introduced far more relevant changes into the series. We interpreted these results in the light of a review of the dynamics of Bom Jesus itself, the socioeconomic history of the Minho region, and the socioeconomic history of Portugal as a whole.
This review led us to conclude that the Bom Jesus revenue was particularly influenced by the positive stimulus of the combination of events that occurred during the s. On the one hand, a novelty effect was introduced by the completion of the set of sixteen chapels , the enlargement of the central lake , the opening of the funicular , and the modernization of the hotels. On the other hand, there was a wealth effect caused by rising activity in the regional industrial sector, remittances from Brazilian emigrants, and the acts of a bourgeoisie with more time available for leisure activities.
The national dimension was especially influential for the series of yearly growth rates, and and were identified as particularly relevant years. These ties helped to change volatile growth rates into continuous positive growth rates for the series observed. We identify four main opportunities for future research. Because the years after were not covered, we suggest an extension of this analysis to this more recent period.
A second opportunity relates to the possibility of studying the different series that compose revenue. Accordingly, we suggest that the breakpoints in the series relating to current revenue and those relating to capital inflows be studied separately. Thirdly, the cycles namely seasonality using monthly data of revenue and growth rates could be analyzed using appropriate techniques, such as periodograms and spectral analysis. Pedro de Vila Real The language of choice for time-series analysis? Can either explain nonstationary exchange rates under the current float? Braga da Cruz, M. In Aguiar e Silva, V.
Dissertation on History of Populations. Universidade do Minho, Braga. Lessons from transition countries". Journal of Comparative Economics , Elsevier, 41, 2, Princeton University Press, Princeton. Dating Breaks in U. Journal of Economic Perspectives , 15, 4, — Santiago de Antas Thesis on History of Populations.
Portuguese economic growth, — The Macmillan Company, New York. A discussion based on Catholic Bulletins.
O Estado, a Igreja e a Sociedade em Portugal Instituto Nacional Casa da Moeda. Migration, trade and peoples—Part 3: The British Academy, London.
Bom Jesus do Monte. Salazar e o Poder—a Arte de saber durar. Escritos de Unamuno sobre Portugal. What do we know and What do we need to know?
The author also wishes to thank the members of the Executive Board of the Bom Jesus Brotherhood for permitting the collection of the primary data. The author also recognizes the willingness and availability of the Bom Jesus workers namely Fernando Rocha in providing a convenient timetable during which the Bom Jesus historical books could be studied. Cunha Leal gave a speech. This conference precipitated the military coup that started in Braga the following morning, resulting in the establishment of the Second Portuguese Republic However, because this information is scattered among various books, with different accounting methods being used by different bookkeepers and treasurers, we opted to cover the most extensive series of yearly observations, which was constructed using the same methodological and accounting procedures.
Therefore, we focused only on the years between and More recent years i. The study of daily balance sheets after merits additional attention in future research studies. Book covered the period from July 18, , to June 30, Book covered the period from June 30, , to June 30, Book gave the details for book Book covered the period from June 30, , to December 31, Books and gave the details for book Examples include the epidemics of smallpox and typhoid during the s, according to Barbosa , and increasing emigration after , according to Barbosa Sobre educacao, politica e sindicalismo.
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