scholarly journals Consumption Function in Islamic Economics

2021 ◽  
Vol 1 (2) ◽  
pp. 133-136
Author(s):  
Syed Iqbal Mahdi
Keyword(s):  
Economic Theory ◽  
Consumer Behavior ◽  
Modern Theory ◽  
Consumption Function ◽  
Modern Economic ◽  
Material Benefits ◽  
Logical Errors

M. Fahim Khan, “Macro Consumption Function in an IslamicFramework,” Journal of Research in Islamic Economics (JRIE), Vol. 1,No. 2, Winter 1404/1984, pp. 1-24.Prof. M. Fahim Khan’s paper suffers from a number of deficiencieswhich may be grouped under the following categories:1. Inaccuracies in the description of positions relating to modernsecular economics.2. Questionable interpretation of Islamic positions.3. Technical and logical errors in model construction.I shall take up these points in turn.To begin with, Prof. Khan’s description of the premises of moderneconomic theory of consumer behavior and its subsequent critique isinaccurate. According to him, “Modern economic theory studiesconsumer behavior under the following premises: i) It is assumed that aconsumer will decide what to consume and how much to consume only togain the material benefits and satisfaction. ii) It is generally assumedthat all his consumption is geared to satisfy his own needs. He is notbothered to satisfy anyone else’s needs. iii) It is assumed that a consumerbehaves rationally. This among other things, means:(a) the consumer will neither be a miser nor an unnecesssry spendthrift.(b) he will not hoard his wealth.” (p. 2)Modern economic theory of consumer behavior do&e not assume any ofthe said premises given by Prof. Khan. What modern theory msumes isthat a consumer with given income allocates his spending on differentgoods and services in such a way that he maximizes his utility orsatisfaction. According to modern theory, it does not matter whether aconsumer is a miser, spendthrift or a hoarder. Also it does not matter ...

scholarly journals L’effet de stimuli externes et des variables individuelles sur le traitement initial de l’information par le consommateur

2009 ◽  
Vol 58 (4) ◽  
pp. 419-442
Author(s):  
Jean-Claude Dufour ◽  
Jean-Marc Martel
Keyword(s):  
Economic Theory ◽  
Information Processing ◽  
Consumer Behavior ◽  
Utility Function ◽  
Production Function ◽  
Decision Process ◽  
Consumer Information ◽  
Consumption Function ◽  
Classical Economic ◽  
Efficient Consumption

Abstract The neo-classical economic theory of the consumer behavior defines a utility function in terms of a global number of characteristics a product process or the result of several purchase activities. Every consumer can be in the context of aninefficient consumption function if the choice of the product bought doesn't fit with the state of preferences for the characteristics of this product. Thus, an efficient consumption function requires an adequate level of information that the mechanics of the market performance doesn't guarantee as well as for the consumption function as for the production function. In this paper, the consumer information processing limit is exposed showing an important gap between the preferred and memorized information by the consumer during the decision process. The concept of pre-processed information proposed could possibly improve the efficiency of the consumption function.

Methodological Principles of Keynes’ Theory and His «Strife over Method» with Tinbergen

2007 ◽  
pp. 25-36 ◽  
Author(s):  
I. Rozmainsky
Keyword(s):  
Economic Theory ◽  
Critical View ◽  
Modern Economic ◽  
Methodological Principles

The author analyzes Keynes-Tinbergen controversy in the context of Keynes’ methodological ideas, which he thinks are fully opposite to the methodology of modern economic theory. Using different Keynes’ papers the author considers this difference in detail and shows its links to the critical view held by Keynes towards econometrics

Beyond GDP: The Quest for a Measure of Social Welfare. Part I

2012 ◽  
pp. 67-93 ◽  
Author(s):  
M. Fleurbaey
Keyword(s):  
Economic Theory ◽  
Social Welfare ◽  
Well Being ◽  
National Product ◽  
Future Generations ◽  
Modern Economic ◽  
Aggregate Wealth ◽  
Net National Product ◽  
Sustainability Policy ◽  
Beyond Gdp

The first part of the paper is devoted to the monetary indicators of social welfare. It is shown which methods of quantitative estimating the aggregate wealth and well-being are available in the modern economic theory apart from the traditional GDP measure. The limitations of the methods are also discussed. The author shows which measures of welfare are adequate in the dynamic context: he considers the problems of intertemporal welfare analysis using the Net National Product (NNP) for the sustainability policy and in the context of concern for well-being of the future generations.

Some Developments in Economic Theory Since 1940: An Eyewitness Account

2010 ◽  
pp. 4-23 ◽  
Author(s):  
K. Arrow
Keyword(s):  
Economic Theory ◽  
General Equilibrium ◽  
Equilibrium Theory ◽  
General Equilibrium Theory ◽  
Economics Of Information ◽  
Modern Economic ◽  
Eyewitness Account ◽  
Theory Uncertainty ◽  
Professional Formation

The article considers the evolution of some branches of modern economic theory from the perspective of the authors biography as a scientist and his professional formation. It describes problems of econometrics, general equilibrium theory, uncertainty, economics of information, and growth. It is shown how different authors representing various fields came to similar conclusions simultaneously and independently, what were the problems, in response to which economists of the second half of last century developed their theories, and what were the contexts of such development.

B is for Bias

2014 ◽  
Vol 3 (2) ◽  
pp. 35-47
Author(s):  
Calin Valsan
Keyword(s):  
Economic Theory ◽  
Rational Expectations ◽  
Economic Environment ◽  
Rational Agents ◽  
Economic Agents ◽  
Behavioral Biases ◽  
The Social ◽  
Modern Economic

Standard economic theory assumes rational agents. Individuals are expected to have rational expectations and constantly optimize their choices. Modern economic and financial theory is build under the assumption of rationality. There is plenty of evidence from psychology, however, that individuals are biased and rely heavily on heuristics in order to make decisions. Yet, this is not a mere fluke, a behavioral oddity. Because the social and economic environment in which individuals evolve is complex, behavioral biases represent evolutionary adaptations allowing economic agents to deal with undecidability and computational irreducibility.

THE CONCEPT OF INFRAMARGINAL ANALYSIS IN THE STRUCTURE OF THE DEVELOPMENT OF MODERN ECONOMIC THEORY

2021 ◽  
pp. 6-14
Author(s):  
E. A. Gasanov
Keyword(s):  
Economic Theory ◽  
Special Section ◽  
Key Characteristics ◽  
Modern Economic

Inframarginal analysis is a special section of modern economic theory. The article describes the essence of the inframarginal approach, examines its general theoretical origins and presents key characteristics

scholarly journals Martín de Azpilcueta: The Spanish Scholastic on Usury and Time-Preference

Studia Humana ◽  
2020 ◽  
Vol 9 (2) ◽  
pp. 28-36
Author(s):  
Pedro J. Caranti
Keyword(s):  
Economic Theory ◽  
Golden Age ◽  
Time Preference ◽  
Economic Thought ◽  
Preference Theory ◽  
Modern Economic ◽  
The University

AbstractMartín de Azpilcueta and his fellow Spanish Scholastics writing and teaching at the University of Salamanca during Spain’s Golden Age are rightly pointed to by historians of economic thought as being major contributors toward, if not outright founders of modern economic theory. Among these is the theory of time-preference for which Azpilcueta has repeatedly been given the credit for discovering. However, this discovery is a curious one given how the same man, Azpilcueta, condemned usury in general during his whole life. If Azpilcueta did in fact discover this theory and fully understand its implications, we would reasonably expect him to have questioned his support for the ban on charging an interest on a loan. This paper, therefore, challenges the claim that Azpilcueta understood and revived time-preference theory and shows how his understanding was much more nuanced, and, at times, inconsistent.

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