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Consumprion and Islam: Micro Foundations and Macro Modelling

Journal of Economic and Social Thought

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Title Consumprion and Islam: Micro Foundations and Macro Modelling
 
Creator HASAN, Zubair; INCEIF
 
Subject Wants and needs; Micro foundations; Utility maximization; Macro models; Scarcity.
D10; D11; E20.
 
Description 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.
 
Publisher Journal of Economic and Social Thought
Journal of Economic and Social Thought
 
Contributor —
 
Date 2017-03-04
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Format application/pdf
 
Identifier http://www.kspjournals.org/index.php/JEST/article/view/1207
10.1453/jest.v4i1.1207
 
Source Journal of Economic and Social Thought; Vol 4, No 1 (2017): March; 108-118
Journal of Economic and Social Thought; Vol 4, No 1 (2017): March; 108-118
2149-0422
 
Language eng
 
Relation http://www.kspjournals.org/index.php/JEST/article/view/1207/1212
 
Rights Copyright (c) 2017 Journal of Economic and Social Thought
http://creativecommons.org/licenses/by-nc/4.0