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Towards an Islamic Macro Model of Distribution: A Comparative Approach

Al-Jarhi, Mabid (1985): Towards an Islamic Macro Model of Distribution: A Comparative Approach. Published in: Journal of Research in Islamic Economics , Vol. 2, No. 2 (1985): pp. 3-29.

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Abstract

This paper' presents some ideas on the construction of a macro- distribution model of an Islamic economy. It introduces a model based on the concept that in the Islamic (in contrast to Muslim) society, most Muslims are propertied, though to different degrees, because of the application of Zakah. This implies two important propositions. Firs the study of distribution is inseparable from that of redistribution. Second, the distinction in saving behavior between "capitalists" and "laborers" becomes immaterial. The results of the model indicate no predominance of the behavior of any particular class to the determination of either fuctor shares, or profit rate. The results of the model also indicate that an Islamic economy would have higher growth, higher return on capital and more equitable distribution of wealth than a western economy of the Kaldor-Pasinetti type.

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