Consumprion and Islam: Micro Foundations and Macro Modelling
PDF

Keywords

Wants and needs
Micro foundations
Utility maximization
Macro models
Scarcity.

How to Cite

HASAN, Z. (2017). Consumprion and Islam: Micro Foundations and Macro Modelling. Journal of Economic and Social Thought, 4(1), 108–118. https://doi.org/10.1453/jest.v4i1.1207

Abstract

Abstract. Function in Islamic economics. It starts with a brief look at the microelements of the concept and clears several cobwebs concerning wants and needs, scarcity of resources, the basket of goods, and the efficacy of utility and its maximization for consumer equilibrium. The explanations narrow down the conceptual gaps between the micro and macro level articulations of the subject. Next, the paper reviews some selected macro models resting on division of income on the basis of nisab between the upper (rich) and the lower (poor) classes of society for analyzing the impact of zakah-moderation mechanism on economic growth via the saving-investment route. It is demonstrated that, contrary to the claim based on models, the positive impact of Islamic scheme on the variables studied is uncertain, to put it mildly. Finally, attention is drawn to some recent developments in the treatment of consumption in economics as also to interest being shown in the subject in other social sciences. This inter-disciplinary approach seeks to detach consumption from income and links it to wealth. It also brings in environmental and ethical concerns into the picture. The effort promises to bring the treatment of consumption closer in the two economic disciplines, secular and Islamic: it is a welcome development.

Keywords: Wants and needs, Micro foundations, Utility maximization; Macro models, Scarcity.

JEL. D1, D11, E2.

https://doi.org/10.1453/jest.v4i1.1207
PDF

References

Ahmad, A.-R.Y. (2002). Methodological approach to Islamic economics: Its philosophy, theoretical construction and applicability, in H. Ahmed, Theoretical Foundations of Islamic Economics (Book of Readings No.3), Islamic Development Bank, IRTI.

Bernett, C., & Clock, P. (2003) Governing the Subjects and Spaces of Ethical Consumption. Internet, Research Projects, Oxford University.

Beverly, S.G. (2002). Consumption and social welfare; living standards and their distribution in the United States. (Book Review), Journal of Sociology and Social Welfare, 29(4), 172-174.

Chapra, M.U. (2000) The Future of Economics: An Islamic Perspective, The Islamic Foundation.

Derwish, A.F., & Zain, M.S. (1985). Effect of Zakah on aggregate consumption function in an Islamic economy, Journal of Research in Islamic Economics, 2(2), 121-130.

Hasan, Z. (1985). Fahim Khan; Macro consumption function in an Islamic framework comments, Journal of Research in Islamic Economics, 2(2), 79-81.

Hasan, Z. (1990). Munawar Iqbal; Zakah, moderation, and aggregate consumption in an Islamic economy-comments, KAU Islamic Economics, 2(2), 91-100.

Hasan, Z. (1996). Akram Khan; An introduction to Islamic economics (Book Review), American Journal of Islamic Social Sciences, 13(4), 580-585.

Hasan, Z. (2002). Maximization postulates and their efficacy for Islamic economics, American Journal of Islamic Social Sciences, 19(3), 95-118.

Hassan, B.G. (2016). A consumer and social welfare model based on the writings of Shibani (750-805 AD, 131-189 AH), PSL Quarterly Review, 69(2), 235-266.

Iqbal, M. (1985). Zakah, moderation, and aggregate consumption in an Islamic economy, Journal of Research in Islamic Economics, 3(1), 45-60.

Kahf, M. (1992a). The theory of consumption, in Tahir et al, (Eds.) Readings in Microeconomics in Islamic Perspective, (pp.61-68), Longman Malaysia.

Kahf, M. (1992b). A contribution to the theory of consumer behavior in an Islamic society, Readings in Microeconomics in Islamic Perspective, Longman Malaysia.

Khan, M.A. (1994). An Introduction to Islamic Economics, Islamabad, The International Institute Thought Pakistan.

Khan, M.F. (1992). Theory of Consumer Behaviour in an Islamic Perspective, Readings in Microeconomics in Islamic Perspective, Longman Malaysia, pp. 69-80

Khan, M. (1995). Essays in Islamic Economics, Islamic Foundation UK.

Khan, M. (2002). Fiqh foundations of the theory of Islamic economics: A survey of selected contemporary writings on economics relevant subjects of Fiqhin Habeeb Ahmed, Theoretical Foundations of Islamic Economics, Book of Readings No.3, Islamic Development Bank, IRTI.

Metwally, M.M. (1981). Macroeconomic Models of Islamic Doctrines, London, J.K. Publishers.

Metwally, M.M. (1985). Rejoinder to Darwesh and Zain, Journal of Research in Islamic Economics, 2(2), 143-46.

Schor, J. (2003). The New Politics of Consumption – Life Cycle Thinking as a Solution, Research Projects, Oxford University.

Slesnick, D.T. (2001) Consumption and Social Welfare: Living Standards and their Distribution in the United States, Oxford UK.

Siddiqi, M.N. (1992). Islamic Consumer Behavior, in Tahir et al., (Eds.), Readings in Microeconomics in Islamic Perspective, (pp.49-60), Longman Malaysia.

Siddiqi, M.N. (1996). Teaching Economics in Islamic Perspective, Centre for Research in Islamic Economics, KAU Jeddah.

Shibani, M.I.A.-H. (1997). Book of Earning, 1st Ed. explained by Mohammed Sarkhasi, verified by Abdul Fattah Abu Ghuda, Beirut: Dar Albachaer Alislamia, and Aleppo: Office of the Islamic Publications.

Tag-el-Din, Saif-al-Din, (1985). Fahim Khan; Macro consumption function in an Islamic framework – comments, Journal of Research in Islamic Economics, 2(2), 57-61.

Zarqa, A. (1992). Consumer behavior in Islamic perspective, in Tahir et al., (Eds.), Readings in Microeconomics in Islamic Perspective, Longman, Malaysia.

Creative Commons License
This article licensed under Creative Commons Attribution-NonCommercial license (4.0)

Downloads

Download data is not yet available.