A consumer and social welfare model based on the writings of Shibani (750-805 AD, 131-189 AH)
DOI:
https://doi.org/10.13133/2037-3643_69.278_2Keywords:
consumer, faith, Zakat, imperative, recommended, permissible, earning, spending, utility.Abstract
The work analyses the writings of Shibani, considering their relevance for contemporary Islamic economics. The novelty of Shibani’s earnings model is its integration of Zakat and other social giving in the social welfare function, which makes the consumer utility a multi-dimensional devotional, material, ethical, social, Shariah-compliant function. The paper proposes a model based on Shibani’s thought, in which the consumer’s income evolves increasingly, from the “imperative earnings” that cover the consumer’s basic needs, to “recommended earnings”, which cover the basic needs of relatives; and to “permissible earnings”, which cover the poor’s needs. Accordingly, the model distinguishes about imperative, recommended, and permissible utility. Rich consumers draw additional utility from Zakat spending in favour of poor consumers. The permissible marginal utility is related to faith interaction and enhances social utility as social transfers are paid to the poor and needy groups.
JEL: D1, D6, I3, P46
References
Alkhadmi N. al-D. (2001), Science of Shariah Purposes, 1st ed. Riyadh: Obeikan Library [Arabic].
Almassri R.Y. (2001), The Economic Thought of Jouini the Imam of the Two Holy Masjids (419-478 AH, 1028-1085 AD), 1st ed. Beirut and Damascus: Dar Alfikr Almoassir [Arabic].
Askari H., Iqbal Z., Mirakhor A. (2015), Introduction to Islamic Economics: Theory and Application, Singapore: John Wiley & Sons.
Asutay M. (2007), “A Political Economy Approach to Islamic Economics: Systemic Understanding for an Alternative Economic System”, Kyoto Bulletin of Islamic Area Studies, vol. 1 n. 2, pp. 3–18.
Barro R.J., McCleary R.M. (2006), “Religion and Economy”, The Journal of Economic Perspectives, vol. 20 n. 2, pp. 49–72 http://doi.org/10.1257/08953300 6777640960.
Ben Jilali B., Azzamil Y. (1992), “Measuring the Consumption Function in an Islamic Framework”, Journal of Islamic Economics Research, vol. 2 n. 2, pp. 37–66 [Arabic].
Ben Jilali B., Taher F. (1989), “Towards a Theory of Muslim Consumer Behavior”, Journal of Social Sciences, vol. 17 n. 1 [Arabic].
Bernheim D.B., Rangel A. (2007), “Toward Choice-Theoretic Foundations for Behavioral Welfare Economics”, The American Economic Review, vol. 97 n. 2, pp. 464–470.
Bernheim D.B., Rangel A. (2009), “Beyond Revealed Preference: Choice-Theoretic Foundations for Behavioral Welfare Economics”, The Quarterly Journal of Economics, vol. 124 n. 1, pp. 51–104 http://doi.org/10.1162/qjec. 2009.124.1.51.
Biagini S., Frittelli M. (2008), “A Unified Framework for Utility Maximization Problems: an Orlicz Space Approach”, The Annals of Applied Probability, vol. 18 n. 3, pp. 929–966 http://doi.org/10.1214/07-AAP469.
Bjorvatn K., Cappelen A.W. (2003), “Inequality, Segregation, and Redistribution”, Journal of Public Economics, vol. 87 n. 7–8, pp. 1657–1679 http://doi.org/10.1016/S0047-2727(01)00202-X.
Bjorvatn K., Cappelen A.W. (2006), “Redistribution and the Nature of Altruism: Should Welfare Programs be Centralized or Decentralized?”, Economics of Governance, vol. 7 n. 2, pp. 133–142 http://doi.org/10.1007/s10101-005-0007-3.
Chapra M.U. (2000), The Future of Economics: An Islamic Perspective, Leicester, UK: The Islamic Foundation.
Chapra M.U. (2014), Morality and Justice in Islamic Economics and Finance, Cheltenham, UK and Northampton, MA, USA: Edward Elgar.
Dounia S.A. (1998), Series of Scholars on the Islamic Economics. Vols. 1-3, Cairo: Kamel Center of Islamic Economics [Arabic].
Eldasoqi M. (1987), Mohammed Bin Hassan Shibani and Its Impact on Islamic Jurisprudence, Doha: House of Culture [Arabic].
Ghazali A.H. (1988), “The Revival of the Religion Science”, in I. Rifai (Ed.), Book of Earning a Livelihood, and Book of Standard Behaviors of Living and Ethics of the Prophethood, 1st ed. reviewed by AS. Shahin, Cairo: Alahram Center for Translation and Publishing [Arabic].
Gintis H. (1998), “The Individual in Economic Theory: A Research Agenda”, mimeo, Department of Economics, University of Massachusetts, Amherst, available at www.uvm.edu/~jdericks/EE/Gintis.pdf.
Harsanyi J.C. (1955), “Cardinal Welfare, Individualistic Ethics, and Interpersonal Comparisons of Utility”, Journal of Political Economy, vol. 63 n. 4, pp. 309–321.
Hasan Z. (2005), “Treatment of Consumption in Islamic Economics: An Appraisal”, Journal of King Abdulaziz University (JKAU): Islamic Economics, vol. 18 n. 2, pp. 29–46.
Hasan Z. (2015), Economics with Islamic Orientation, Singapore: Oxford University Press.
Iqbal M. (1985), “Zakah, Moderation and Aggregate Consumption in An Islamic Economy”, Journal of Research in Islamic Economics, vol. 3 n. 1, pp. 45–61.
Kahf M. (1980), “A Contribution to the Theory of Consumer Behaviour in an Islamic Society”, in A. Kuhrshid (Ed.), Studies in Islamic Economics, pp. 19–36, Jeddah: International Center for Research in Islamic Economics, King Abdulaziz University and Leicester, Uk: The Islamic Foundation.
Keynes J.M. (1936), The General Theory of Employment, Interest and Money, London: Macmillan.
Khan F.M. (1984), “Macro Consumption Function in an Islamic Framework”, Journal of Research in Islamic Economics, vol. 1 n. 2, pp. 3–25.
Khan F.M. (1992), “Theory of Consumer Behavior in Islamic Perspective”, in S. Tahir, A. Ghazali, S. Omar, S. Agil (Eds.), Readings in Microeconomics: An Islamic Perspective. Selected Readings, pp. 69–80, Kuala Lumpur: Longman Malaysia.
Khan F.M. (2013), “Theorizing Islamic Economics: Search for a Framework for Islamic Economic Analysis”, Journal of King Abdulaziz University (JKAU): Islamic Economics, vol. 26 n. 1, pp. 209–242 http://doi.org/10.4197/Islec. 26-1.10.
Khassawneh A.M. (2010), The Economic Thought of Imam Mohammed bin Hassan Shibani, Dubai: Dar Al-Qalam Publishing & Distribution [Arabic].
Kramkov D., Schachermayer W. (1999), “The Asymptotic Elasticity of Utility Functions and Optimal Investment in Incomplete Markets”, The Annals of Applied Probability, vol. 9 n. 3, pp. 904–950.
Krasnoselʹskiĭ M.A., Rutit︠s︡kiĭ I.B. (1961), Convex Functions and Orlicz Spaces, Groningen, The Netherlands: Noordhoff.
Kuziemko I., Norton M.I., Saez E., Stantcheva S. (2015), “How Elastic Are Preferences for Redistribution? Evidence from Randomized Survey Experiments”, The American Economic Review, vol. 105 n. 4, pp. 1478–1508 http://doi.org/ 10.1257/aer.20130360.
Luttmer E.F.P. (2005), “Neighbors as Negatives: Relative Earnings and Well-Being”, Quarterly Journal of Economics, vol. 120 n. 3, pp. 963–1002 http://doi.org/ 10.1093/qje/120.3.963.
Mahboub A.H. (1991), “Towards a Theory of Muslim Consumer Behavior and Economic Welfare”, Journal of Islamic Economics Research, vol. 1 n. 2, pp. 12–24 [Arabic].
Metzler L.A. (1951), “Wealth, Saving, and the Rate of Interest”, Journal of Political Economy, vol. 59 n. 2, pp. 93–116.
Montasser A. (1989), “Essay to Model the Consumer Behavior Theory in Islamic Economics: the Ordinal Standard”, in XIV International Congress of Statistics, Scientific Calculations and Socio-Demographic Research, Cairo: Ain Shams University [Arabic].
Mustafa O.M. (2011), “Economic Consumption Model Revisited: Infaq Based on AlShaybani’s Levels of Al-Kasb”, International Journal of Economics, Management & Accounting, vol. 19 n. 3, Supplementary Issue, pp. 115–132 Retrieved from http://journals.iium.edu.my/enmjournal/index.php/enmj/ article/download/203/160.
Nadawi A. (1994), Imam Muhammad Ibn al-Hassan Shibani Genius of Islamic Jurisprudence, 1st ed. , Series of Muslim Scholars 47, Damascus: Dar Alqalam [Arabic].
Ng S., Lee A.Y. (eds.) (2015), Handbook of Culture and Consumer Behavior, New York: Oxford University Press.
Nixon M.G. (2007), “Satisfaction for Whom? Freedom for What? Theology and the Economic Theory of the Consumer”, Journal of Business Ethics, vol. 70 n. 1, pp. 39–60 http://doi.org/10.1007/s10551-006-9078-5.
North D.C. (1990), Institutions, Institutional Change and Economic Performance, Cambridge: Cambridge University Press.
Parada-Contzen M., Parada-Daza J.R. (2013), “Utility, Ethics and Behavior”, Journal of Academic and Business Ethics, vol. 7, pp. 1–27.
Piroscă G. (2011), “Economic Crises and the Complexity of Animal Spirits Modeling”, Theoretical and Applied Economics, vol. 18 n. 2, pp. 153–170 Retrieved from http://store.ectap.ro/articole/564.pdf.
Raissouni A. (1992), Theory of Purposes with Imam Shatiby, 2nd ed. Dar Global of the Islamic Book [Arabic].
Rao M.M., Ren Z.D. (1991), “Theory of Orlicz Spaces”, Monographs and Textbooks in Pure and Applied Mathematics, vol. 146.
Saez E., Stantcheva S. (2016), “Generalized Social Marginal Welfare Weights for Optimal Tax Theory”, The American Economic Review, vol. 106 n. 1, pp. 24–45 http://doi.org/10.1257/aer.20141362.
Sauer J.B. (2003), “Christian Faith, Economy, and Economics: What Do Christian Ethics Contribute to Understanding Economics”, Faith & Economics, vol. 42, pp. 17–25.
Schneider H., Krieger J., Bayraktar A. (2011), “The Impact of Intrinsic Religiosity on Consumers’ Ethical Beliefs: Does It Depend on the Type of Religion? A Comparison of Christian and Moslem Consumers in Germany and Turkey”, Journal of Business Ethics, vol. 102 n. 2, pp. 319–332 http://doi.org/10.1007/ s10551-011-0816-y.
Sen A. (1987), On Ethics and Economics, Oxford and New York: Basil Blackwell.
Shatiby I. (2005), The Approvals in Bases of the Shariah, Vol. 1, part 2, Cairo: Dar Hadith, Scientific Books [Arabic].
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.
Stutzer A. (2004), “The Role of Income Aspirations in Individual Happiness”, Journal of Economic Behavior and Organization, vol. 54 n. 1, pp. 89–109.
Zaman A. (1992), “Towards Foundations for an Islamic Theory of Consumer Behavior”, in S. Tahir, A. Ghazali, S. Omar, S. Agil (Eds.), Readings in Microeconomics: An Islamic Perspective. Selected Readings, pp. 81–89, Kuala Lumpur: Longman Malaysia.
Zarqa M.A. (1980), “An Islamic Formulation of Aspects of the Social Welfare Function and Consumer Behavior Theory”, in First World Conference on Islamic Economics Publications, pp. 155–197, International Center for Research on Islamic Economics [Arabic].
Zarqa M.A. (1992), “A Partial Relationship in a Muslim’s Utility Function”, in S. Tahir, A. Ghazali, S. Omar, S. Agil (Eds.), Readings in Microeconomics: An Islamic Perspective. Selected Readings, pp. 105–112, Kuala Lumpur: Longman Malaysia [Arabic].
Downloads
Published
How to Cite
Issue
Section
License
