IDEAS home Printed from https://ideas.repec.org/a/abd/crieja/v1y1984i2no1p3-25.html
   My bibliography  Save this article

Macro Consumption Function in an Islamic Framework وظيفة الاستهلاك الكلي في إطار إسلامي

Author

Listed:
  • M. Fahim Khan

    (Islamic Development Bank, Jeddah, Saudi Arabia)

Abstract

Consumer behaviour, i.e., how the consumers allocate their income between different heads and how they decide how much to consume now and how much to save for future is a key topic in modern economic theory. The study of consumer behaviour bears implications for macro economic policies. Many modern economic theories conclude that savings are essential for economic growth. The more people save in a country, the more rapidly it will grow. With this background, modern economists conclude that the level of savings in an Islamic economy will be lower if people have to pay zakah on their savings. While presenting this argument, these modern economists consider zakah as a tax on savings that switches allocation of resources from savings (i.e., future consumption) to present consumption. Also, if we take part of the savings of the rich and give it to the poor, who will obviously consume it all, aggregate savings level in the economy, ceteris paribus, will naturally decline. The conclusion, therefore, follows that Islamization of an economy as it will result in lesser savings will adversely affect its growth. --

Suggested Citation

  • M. Fahim Khan, 1984. "Macro Consumption Function in an Islamic Framework وظيفة الاستهلاك الكلي في إطار إسلامي," Journal of Research in Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 1(2), pages 3-25, July.
    • Handle: RePEc:abd:crieja:v:1:y:1984:i:2:no:1:p:3-25
    as

    Download full text from publisher

    File URL: https://iei.kau.edu.sa/Files/121/Files/153905_Vol-1-2-14E-FahimKhan.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. F.R. Faridi, 1983. "Theory of Fiscal Policy in an Islamic State نظرية السياسة المالية في الدولة الإسلامية," Journal of Research in Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 1(1), pages 15-30, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ghassan, Hassan B., 2015. "نموذج النفقة والإعتدال حسب كتابات الشيباني [Spending and Fairness Model Based on the Writing of Shibani]," MPRA Paper 80603, University Library of Munich, Germany, revised 2016.
    2. Ghassan, Hassan B., 2015. "A Consumer Model and Social Welfare Based on the Writings of Shibani (750-805 AD, 131-189 AH)," MPRA Paper 72441, University Library of Munich, Germany, revised 05 Mar 2016.
    3. Seif E.I. Tagel-Din, 1984. "M. Fahim Khan: Macro-Consumption Function in an Islamic Framework, Comments: Seif E.I. Tagel-Din محمد فهيم خان: وظيفة الاستهلاك الكلي في إطار إسلامي - تعليق: سيف الدين إبراهيم تاج الدين," Journal of Research in Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 2(1), pages 51-54, January.
    4. Zubair Hasan, 1990. "Munawar Iqbal: Zakah, Moderation and Aggregate Consumption in an Islamic Economy, Comment منور إقبال: الزكاة والاعتدال والاستهلاك الكلي في الاقتصاد الإسلامي - تعليق," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 2(1), pages 91-100, January.
    5. Ghassan, Hassan B., 2015. "Islamic Consumer Model, Fairness Behavior and Asymptotic Utility," MPRA Paper 67141, University Library of Munich, Germany.
    6. D.H. Norulazidah P.H. Omar Ali & Gareth D. Myles, 2010. "The Consequences of Zakat for Capital Accumulation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(4), pages 837-856, August.
    7. Khan, Muhammad Akram, 2020. "Theory of Consumer Behavior: An Islamic Perspective," MPRA Paper 104208, University Library of Munich, Germany.
    8. Munawar Iqbal, 1985. "Zakah, Moderation and Aggregate Consumption in An Islamic Economy الزكاة، والاعتدال في الإنفاق، والاستهلاك الكلي في اقتصاد إسلامي," Journal of Research in Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 3(1), pages 45-61, January.
    9. Amparo Huertas Bailén, 2018. "Islam and Mass Media Consumption in Post-Migration Contexts among Women from Northern Africa in Catalonia (Spain)," Societies, MDPI, vol. 8(3), pages 1-12, September.
    10. Murat Çokgezen, 2016. "Islamic economics in real life: Do Muslims give more than the others?," Working Papers hal-01349872, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shehu Usman Rano, Aliyu, 2017. "A Treatise on Socioeconomic Roles of Zakah," MPRA Paper 81155, University Library of Munich, Germany, revised 05 Sep 2017.
    2. Jaelani, Aan, 2015. "PENGELOLAAN KEUANGAN PUBLIK DI INDONESIA: Tinjauan Keuangan Publik Islam [MANAGEMENT OF PUBLIC FINANCE IN INDONESIA: Review of Islamic Public Finance]," MPRA Paper 69525, University Library of Munich, Germany.
    3. ISHAK YELKENCI , Nur Shuhada, 2022. "The Progress Of Shari’Ah Implementation In Zakah Management & The Actual Proceeds: Malaysia As A Case Study With Correlation Analysis," Academic Review of Humanities and Social Sciences, Bursa Teknik Üniversitesi, vol. 5(1), pages 105-129.
    4. Ausaf Ahmad, 1996. "Book Review: MOHAMMED ARIFF (editor): The Islamic Voluntary Sector in Southeast Asia, Reviewed by: AUSAF AHMAD مراجعة علمية لكتاب: محمد عارف (محرر): القطاع التطوعي الإسلامي في جنوب شرق آسيا ، مراجعة: ," Book reviews and book reports published in the Journal of King Abdulaziz University: Islamic Economics. 432, King Abdulaziz University, Islamic Economics Institute..
    5. Habib Ahmed, 2019. "Fiscal Policy and Deficit Financing: Islamic Perspectives السياسة المالية وتمويل العجز: وجهات نظر إسلامية," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 32(1), pages 79-85, January.
    6. Jaelani, Aan, 2015. "Public financial management in Indonesia: Review of Islamic public finance," MPRA Paper 72340, University Library of Munich, Germany, revised 01 Nov 2015.
    7. Gulaid, Mahamoud A., 1995. "Public Sector Resource Mobilization In Islam," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 2, pages 79-107.
    8. repec:abd:kauiea:oldjournal:v:1:y:1984:i:2:no:1:p:3-25 is not listed on IDEAS
    9. Mohammed B. Yusoff, 2006. "Fiscal Policy In An Islamic Economy And The Role Of Zakat," IIUM Journal of Economics and Management, IIUM Journal of Economis and Management, vol. 14(2), pages 117-146, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:abd:crieja:v:1:y:1984:i:2:no:1:p:3-25. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: King Abdulaziz University, Islamic Economics Institute. (email available below). General contact details of provider: https://edirc.repec.org/data/cikausa.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.