An Islamıc Approach To Consumption Theory

Year 2018, Volume: 4 Issue: 2, 33 - 42, 31.07.2018

Serkan Dilek , Orhan Küçük Sefa Işık Fatih Çakmak

Abstract

Western
originated economic theory suggests that homo economicus individuals have
unlimited needs and they are insatiable. In ordinal utility theorem as human
consume more they will capture higher total utility. There is no limit in
consuming goods or services for rational individuals except their budgets.
However, in reality if individuals consume more than optimal level they will
suffer.  Holy Quran and Islamic rules
advises households to use only necessary amount of goods. Indıvıduals should
spend for necessary amount of goods. The rest of their budget should be spent
in the way of ALLAH. Indıfference curve approach can’t explain the situation in
which individuals consume excess amount of goods. Zakat and institution alms
are not located in western originated economic theory. In this study we use new
tools to explain individuals will suffer from excess amount of consumption.
Bliss point and indifference circles are used in our approach and by the help
of these tools we can explain Zakat and institution alms. So this will
contribute to develop Islamic economic theory.

Keywords

Islamic Economy, Indıfference Circles, Consumption Theory

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