Towards an integrative framework for understanding Muslim consumption behaviour

Salman Ahmed Shaikh, Mohd Adib Ismail, Abd. Ghafar Ismail, Shahida Shahimi, Muhammad Hakimi Mohd. Shafiai

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

Purpose: This paper aims to integrate Islamic and mainstream economics framework towards a more realistic understanding of Muslim consumption behaviour. Design/methodology/approach: The model incorporates some of the Islamic institutions like period-wise deduction of Zakat from endowments. It also includes bequests which could be significant given the Islamic injunctions on inheritance distribution and the significance placed on the institution of family. Furthermore, the model integrates the assumption that consumption opportunity set will axiomatically filter out the prohibited consumption goods from the consumption set in both contemporaneous and inter-temporal consumption. Findings: Zakat ensures contemporaneous redistribution from endowment surplus households (those having Zakatable endowments above Nisab) to endowment-deficient households (those having Zakatable endowments below Nisab). The lifetime resources are scaled down for endowment surplus households because of the payment of Zakat in both periods and leaving bequests in old-age period, while the lifetime resources are scaled up for endowment deficient households because of the receipt of Zakat in both periods and receiving the bequests in youth. Originality/value: The authors show how some of the Islamic principles and institutions can be integrated in the mainstream economics framework, especially in research studies where the objective is to understand and describe reality rather than persuasion and idealization.

Original languageEnglish
Pages (from-to)133-149
Number of pages17
JournalHumanomics
Volume33
Issue number2
DOIs
Publication statusPublished - 2017

Fingerprint

Muslims
Endowments
Consumption behavior
Household
Zakat
Bequests
Surplus
Resources
Economics
Mainstream economics
Deduction
Methodology
Receipt
Old Age
Injunction
Originality
Persuasion
Filter
Idealization
Redistribution

Keywords

  • Bequests
  • Consumption
  • Overlapping generations model
  • Savings
  • Zakat

ASJC Scopus subject areas

  • Philosophy
  • Economics and Econometrics

Cite this

Towards an integrative framework for understanding Muslim consumption behaviour. / Shaikh, Salman Ahmed; Ismail, Mohd Adib; Ismail, Abd. Ghafar; Shahimi, Shahida; Mohd. Shafiai, Muhammad Hakimi.

In: Humanomics, Vol. 33, No. 2, 2017, p. 133-149.

Research output: Contribution to journalArticle

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