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Redistribution Adjusts Efficiency In Economy; Islamic Paradigm

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  • Widiyanti, Dwi Retno

Abstract

The main discussion in this study is distribution as the root to be forwarded to another economic activity, it is redistribution concept. The concept of redistribution has always been a debate in every microeconomics discussion. Purpose of this study is to discuss how the concept of Islam regulate distribution also redistribution of wealth, and how this concept break away the inefficiency of economic activity. This study begins with a discussion of the principles of ownership by promoting the concept of multi ownership. The principles include all the basis of human freedom master, possess, use, reproduce, distribute, and redistribute wealth. The redistribution of wealth is ruled in every parties of economic agent, as long as it is human. How the redistribution is ruled is investigated based on Islamic Law of Fiqh. Furthermore, this research is trying to examine how the concept of redistribution benefits the efficiency in economy. This study was conducted using research methods of the literature studies, both of textbooks and handbooks various studies. The literature on the concept of Islamic paradigm and the positive paradigm are managed to produce a comprehensive study. In the final conclusion, this study focused on the Islamic paradigm affirmation of distribution and redistribution benefits and its advantage for the improvement of efficient global economy scale.

Suggested Citation

  • Widiyanti, Dwi Retno, 2015. "Redistribution Adjusts Efficiency In Economy; Islamic Paradigm," MPRA Paper 67809, University Library of Munich, Germany, revised 01 Nov 2015.
    • Handle: RePEc:pra:mprapa:67809
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    File URL: https://mpra.ub.uni-muenchen.de/67809/1/MPRA_paper_67809.pdf
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    References listed on IDEAS

    as
    1. Canto, Victor A. & Joines, Douglas H. & Laffer, Arthur B., 1983. "Foundations of Supply-Side Economics," Elsevier Monographs, Elsevier, edition 1, number 9780121588205.
    2. Ballard, Charles L. & Fullerton, Don & Shoven, John B. & Whalley, John, 2009. "A General Equilibrium Model for Tax Policy Evaluation," National Bureau of Economic Research Books, University of Chicago Press, number 9780226036335.
    3. Charles L. Ballard & Don Fullerton & John B. Shoven & John Whalley, 1985. "Introduction to "A General Equilibrium Model for Tax Policy Evaluation"," NBER Chapters, in: A General Equilibrium Model for Tax Policy Evaluation, pages 1-5, National Bureau of Economic Research, Inc.
    4. Islahi, Abdul Azim, 1992. "Islamic distributive scheme: a concise statement," MPRA Paper 30033, University Library of Munich, Germany, revised 1993.
    5. Barr, Nicholas, 2012. "Economics of the Welfare State," OUP Catalogue, Oxford University Press, edition 5, number 9780199297818.
    6. Robin Boadway, 2010. "Efficiency and Redistribution: An Evaluative Review of Louis Kaplow's The Theory of Taxation and Public Economics," Journal of Economic Literature, American Economic Association, vol. 48(4), pages 964-979, December.
    7. Arnold Harberger, 1964. "Taxation, Resource Allocation, and Welfare," NBER Chapters, in: The Role of Direct and Indirect Taxes in the Federal Reserve System, pages 25-80, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Efficiency; Distribution; Islamic economic; Redistribution;
    All these keywords.

    JEL classification:

    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D6 - Microeconomics - - Welfare Economics
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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