Theories of Consumption in the Economic Thought: what explains the consumption pattern of an Islamic economy?


April 2, 2019
Theories of Consumption in the Economic Thought: what explains the consumption pattern of an Islamic economy?
Abdul Karim Ahmed Qunduz

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Issue

The conventional economic literature had been marked by the development of many economic models and theories of consumption, some of which are descriptive models, others are normative. General Theories of Consumption in economic literature contains the Absolute Income Hypothesis of Keynes, the Relative Income Hypothesis (Duesenberry Hypothesis), the Permanent Income Hypothesis of Friedman, and the Life Cycle Hypothesis of Modigliani. Economists have accepted all of these theories, although none of them succeeds entirely in interpreting patterns and behaviors of consumption among individuals. In the Islamic economic literature, there is a lack in developing of a theory that can explain the consumption of the Muslim individual, and how an individual can achieve happiness in his life and in the other life. A theory that describe and explain the relation between consumption and the general lifestyle of Muslims. Even though Islam has put the principles that determine the parameters of good behavior related to consumption, few attempts had been conducted to develop a theory of consumption in Islamic economics. With this perception, our current paper reviews the economic literature of consumption in Islamic economics. We think this will help any future

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