nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2017‒09‒10
eighteen papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Working and Women’s Empowerment in the Egyptian Household: The Type of Work and Location Matter By Clémentine Sadania
  2. Identities and Public Policies: Unintended Effects of Political Reservations for Women in India By Guilhem Cassan; Lore Vandewalle
  3. Cooperative Dynamics During the Financial Crisis: Evidence From Basque and Breton Case Studies By Lorea Narvaiza; Cristina Aragon; Cristina Iturrioz; Julie Bayle-Cordier; Sandrine Stervinou
  4. Albert O. Hirschman ou le mouvement perpétuel de l'apprenant. A propos du livre de Cyrille Ferraton et Ludovic Frobert, "Introduction à Albert O. Hirschman". By Julien Vercueil
  5. La recherche comme accélérateur du pouvoir transformatif des initiatives locales ? By Philippe Chemla; Geneviève Fontaine; Valérie Têtu
  6. China in the Maghreb: From the Spirit of Bandung to the Spirit of Capitalism By Thierry Pairault
  7. Reactivity in Economic Science By Bruno S. Frey
  8. Environmental expenditure disclosure strategies in a regulated context By Florence Depoers; Tiphaine Jérôme
  9. Les conditions d’émergence de communs porteurs de transformation sociale By Geneviève Fontaine
  10. Pluralism in Economics: Epistemological Rationales and Pedagogical Implementation By Jakob Kapeller
  11. A multi-religious consensus on the ethics of sustainable development: Reflections of the Ethics in Action initiative By Annett, Anthony M.; Sachs, Jeffrey; Sánchez Sorondo, Marcelo; Vendley, William F.
  12. Making sense of the plurality of money: a polanyian attempt By Jérôme Blanc
  13. Building Responsible Innovation Ecosystem, a new approach for inter-organizational cooperation By Joël Ntsondé; Franck Aggeri
  14. Is law normalizing Hybrid Organizations? Putting profit-with-purpose corporations into historical perspective By Kevin Levillain; Blanche Segrestin; Armand Hatchuel
  15. SUSTAINABILITY FOR THE ACTORS OF A FOOD VALUE CHAIN: HOW TO COOPERATE? By Gaelle Petit; Gwenola Yannou-Le Bris; Gilles Trystram; Amrine Lallmahomed
  16. La performativité des théories managériales By Jean-Luc Moriceau
  17. The Effect of Mothers’ Employment on Youth Gender Role Attitudes: Evidence From Egypt By May Gadallah; Maia Sieverding; Rania Roushdy
  18. A Treatise on Socioeconomic Roles of Zakah By Shehu Usman Rano, Aliyu

  1. By: Clémentine Sadania (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique - ECM - Ecole Centrale de Marseille)
    Abstract: This paper explores the impact of women’s work on empowerment in Egypt. Existing evidence suffers from several limitations, which I attempt to address. First, I develop an instrumental variable strategy to account for the endogeneity of work. Second, I allow for a heterogeneous impact of work, distinguishing between working in the public sector, outside work in the private sector and home-based work. Third, women’s empowerment is directly measured as their participation in household decisions. Outside work has the greatest impact. Interestingly, home-based work enhances joint decision-making. Distinguishing between urban and rural residence reveals distinct patterns of impact on decision-making.
    Keywords: women’s empowerment,employment,household decision-making
    Date: 2016–12
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01525220&r=hme
  2. By: Guilhem Cassan (University of Namur); Lore Vandewalle (IHEID, Graduate Institute of International and Development Studies, Geneva)
    Abstract: Identity is an important determinant of economic behavior. A limitation of the existing literature is the focus on one identity dimension at a time. We show that the multiplicity of identity dimensions matters for economic behavior and that neglecting it may lead policy makers to overlook important, unintended effects of economic policies. We exploit the randomized nature of political reservations for women in India to show that a policy designed along one identity dimension (gender) alters the distribution of the benefits of this policy along another one (caste). We propose an important variation in gender norms across caste groups as a plausible mechanism.
    Keywords: Intersectionality, identity economics, gender, quotas, affirmative action
    Date: 2017–08–30
    URL: http://d.repec.org/n?u=RePEc:gii:giihei:heidwp18-2017&r=hme
  3. By: Lorea Narvaiza (DEUSTO - Univeristy of Deusto - University of Deusto, Deusto Business School - University of Deusto); Cristina Aragon (DEUSTO - Univeristy of Deusto - University of Deusto, Deusto Business School - University of Deusto); Cristina Iturrioz (DEUSTO - Univeristy of Deusto - University of Deusto, Deusto Business School - University of Deusto); Julie Bayle-Cordier (IESEG - School of Management (LEM)); Sandrine Stervinou (Audencia Recherche - Audencia Business School)
    Abstract: In the recent financial crisis period, when traditional economic organizations were not able to meet stakeholders’ expectations, not-for profit organizations such as cooperatives became an optimal solution as they are expected to serve social and economic performance simultaneously. This theoretical assumption is questioned based on the downturn pressures that may weaken cooperatives’ social performance in favor of economic performance. This degeneration process (Cornforth, et al., 1998) is countered by some traditional cooperatives that have developed regeneration dynamics. The aim of our study is to explore how small and medium cooperatives face degeneration and develop regeneration dynamics in periods of crisis. To fulfil the objective of the paper four small and medium Basque and Breton cooperatives are studied in depth.
    Keywords: crisis, degeneration, regeneration,non-for profit organizations, cooperatives
    Date: 2017–06
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-01414168&r=hme
  4. By: Julien Vercueil (Inalco - Institut National des Langues et Civilisations Orientales)
    Abstract: La pensée complexe d'Albert O. Hirschman forme-t-elle un tout cohérent ? Que peut-on apprendre de ses éventuelles contradictions ? Que dit cette pensée du parcours d’un homme dans son siècle, qui de 1915 à 2012 a certes traversé les époques, les mers et les continents, mais aussi les frontières plus métaphoriques mais souvent épaisses qui séparent l’hétérodoxie de la théorie standard, l’économie de la sociologie, l’épistémologie de l’économie appliquée ? En définitive, quel est son héritage ? Le mérite de ce nouvel opus de Cyrille Ferraton et Ludovic Frobert est de restituer sous une forme à la fois ramassée et accessible – celle, aussi, d’une introduction, revendiquée comme telle - la pensée d’A.O. Hirschman dans sa diversité.
    Keywords: Hirschman
    Date: 2017–07–01
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-01552614&r=hme
  5. By: Philippe Chemla (sans affiliation); Geneviève Fontaine (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12); Valérie Têtu (sans affiliation)
    Abstract: Alors que les définitions des Pôles Territoriaux de Coopération Economique (PTCE), qu'elles émanent du Labo de l'ESS ou de la Loi de 2014, font une place à la recherche comme partie prenante de ces dynamiques collectives territoriales, les études de caractérisation des PTCE (Fraisse, 2015) montrent que la recherche y est, en pratique, peu présente. L'analyse du PTCE TETRIS nous amène à questionner avec J.L Laville (2015) la place de la recherche dans les dynamiques collectives ayant une forte aspiration de transformation sociale. Considérant que l'on ne doit pas imposer aux expériences et initiatives concrètes de renverser le système mais de construire localement une part d'émancipation et de démocratisation de l'économie, il assigne à la recherche un rôle d'accentuation des traits émancipateurs des alternatives pour en renforcer la crédibilité et le pouvoir transformatif. La place accordée à la recherche au sein de TETRIS contribue-t-elle à accentuer sa visibilité et son pouvoir transformatif ?
    Keywords: Pôle Territorial de Coopération Economique, transformation sociale,Innovation sociale
    Date: 2017–04–06
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-01539896&r=hme
  6. By: Thierry Pairault (CCJ - Chine, Corée, Japon - EHESS - École des hautes études en sciences sociales - UPD7 - Université Paris Diderot - Paris 7 - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This contribution will show firstly how from the Bandung Conference to today, the evolution of China’s economic relations with the Maghreb countries expresses the very transformation of the role of China in the world. Then, in a second time, it will show how the size and structure of economic exchanges are acting out China’s mutation from “revolutionary romanticism” to market rationale. Finally, it will conclude with a symbolic expression of this recantation which today manifests a near reversal of alliances and rationales for commercial reasons.
    Abstract: Cet article montre dans un premier temps comment, de la Conférence de Bandung à nos jours, l’évolution des rapports économiques de la Chine avec l’Afrique et les pays du Maghreb exprime la transformation même du rôle de la Chine dans le monde. Puis, dans un deuxième temps, il observe comment l’importance et la structure des échanges de la Chine avec les pays du Maghreb témoignent du basculement de la Chine du « romantisme révolutionnaire » vers une logique de marché. Enfin, il conclut sur une expression emblématique de cette palinodie qui manifeste aujourd’hui un quasi-renversement des alliances et des logiques pour des raisons commerciales.
    Keywords: China, Maghreb, Algeria, Morocco, Bandung Conference, market rationality,Algérie,Chine,Maghreb,logique de marché,Conférence de Bandung,Maroc
    Date: 2017–06–29
    URL: http://d.repec.org/n?u=RePEc:hal:journl:halshs-01556325&r=hme
  7. By: Bruno S. Frey
    Abstract: There is a fundamental difference between the natural and the social sciences due to reactivity. This difference remains even in the age of Artificially Intelligent Learning Machines and Big Data. Many academic economists take it as a matter of course that economics should become a natural science. Such a characterization misses an essential aspect of a social science, namely reactivity, i.e. human beings systematically respond to economic data, and in particular to interventions by economic policy, in a foreseeable way. To illustrate this finding, I use three examples from quite different fields: Happiness policy, World Heritage policy, and Science policy.
    Keywords: Economics; Social; Natural Science; Reactivity; Data; Happiness; Economic Policy
    JEL: A10 B40 C70 C80 D80 Z10
    Date: 2017–08
    URL: http://d.repec.org/n?u=RePEc:cra:wpaper:2017-10&r=hme
  8. By: Florence Depoers (CEROS - Centre d'Etudes et de Recherches sur les Organisations et la Stratégie - UPN - Université Paris Nanterre); Tiphaine Jérôme (University of Applied Sciences Northwestern Switzerland)
    Abstract: Environmental expenditures (EE) are used to assess and monitor corporate environmental performance. Legislators are aware of the informative potential of this indicator, and listed firms are required to disclose their EE. Our research draws on legitimacy theory to identify and explain the strategic responses of a sample of French listed companies to the requirement to disclose this item. A content analysis identifies three different strategies: no response, a “facade” response, and a substantive response. Tests reveal several determinants of these strategies: environmental criticism, the existence of SRI shareholders, and the business sector. Our research contributes to both academic and regulatory debates on standardization of environmental disclosures, by revealing and explaining how firms behave in response to the law.
    Keywords: ENVIRONMENTAL EXPENDITURES, LEGITIMACY, STRATEGY – CORPORATE DISCLOSURE – LAW - MEDIA COVERAGE – SRI SHAREHOLDERS – CORPORATE SOCIAL RESPONSIBILITY- ENVIRONMENTAL INFORMATION,DÉPENSES ENVIRONNEMENTALES, LÉGITIMITÉ, STRATÉGIE, PUBLICATION, LOI, VISIBILITE MEDIATIQUE, INESTISSEMENT SOCIALEMENT RESPONSABLE, RESPONSABILITE SOCIALE DE L’ENTREPRISE, INFORMATION ENVIRONNEMENTALE
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-01576195&r=hme
  9. By: Geneviève Fontaine (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12)
    Abstract: Les crises environnementales, sociales, économiques et démocratiques actuelles peuvent constituer un contexte favorable à l’émergence d’innovations sociales à la fois réparatrices, permettant de rendre la transition moins douloureuse, mais aussi transformatives, s’inscrivant dans la mise en œuvre d’un autre modèle de développement (Levesque B., 2012). Dans le même temps, la pensée et le cadre d’analyse développés par Elinor Ostrom inspirent des initiatives et alimentent de très nombreux travaux, notamment en France, qui interrogent l’apport de cette approche des communs à l’analyse de la propriété, des institutions, du développement ou de l’Economie Sociale et Solidaire. Le pouvoir transformatif des communs en tant qu’actions collectives instituantes autour de ressources vécues comme vulnérables peut-il être questionné et renforcé par les analyses de l’innovation sociale ?
    Keywords: Communs, innovation sociale, capabilités, transformation sociale
    Date: 2017–04–06
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-01539864&r=hme
  10. By: Jakob Kapeller (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria)
    Abstract: This paper first presents a series of epistemological rationales for pluralism as a guiding concept in economic research. In doing so, it highlights the inherent uncertainty of (scientific) knowledge as well as the complex and dynamic nature of socio-economic relationships to indicate how the discussion of theoretical and applied problems in economics might benefit from a pluralist approach. Eventually, I apply the notion of pluralism in economics to questions of economic teaching and curricular design in economics.
    Date: 2017–08
    URL: http://d.repec.org/n?u=RePEc:ico:wpaper:68&r=hme
  11. By: Annett, Anthony M.; Sachs, Jeffrey; Sánchez Sorondo, Marcelo; Vendley, William F.
    Abstract: The challenges of sustainable development are primarily ethical in nature. Guided by a ceaseless quest for profit, today's global economy is synonymous with vast amounts of exclusion, indignity, and environmental devastation. To succeed, therefore, the Sustainable Development Goals require "moral capacity" as much as financial or technical capacity. In line with the recently-formed Ethics in Action initiative, the authors therefore propose a sequence of measures designed to better orient the global economy toward the common good, coherent with the values of the world's major religious traditions. These proposals are in the areas of financing, the pursuit of justice, and pedagogy.
    Keywords: ethics,sustainable development,religion,poverty
    JEL: A13 I30 O19 Z12
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:zbw:ifwedp:201756&r=hme
  12. By: Jérôme Blanc (TRIANGLE - Triangle : action, discours, pensée politique et économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet [Saint-Etienne] - Institut d'Études Politiques [IEP] - Lyon - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper aims at accounting for the dramatic plurality of money through the discussion of a conceptual framework built on Polanyian writings. Three ideal types are built: public money, business money and associative money. This typology is enriched by Polanyian concepts, which are discussed and adapted for this purpose: first, the distinction between all-purpose money and special-purpose money; second, his distinction between three or four forms of integration, here called exchange, redistribution, reciprocity and communal sharing. The whole helps understanding the complexity of real cases, starting with our ordinary money, and especially emphasizing the contemporary diversity of associative moneys.
    Keywords: Plurality of money,modern money,ideal types,Polanyi,forms of integration
    Date: 2017–06–29
    URL: http://d.repec.org/n?u=RePEc:hal:journl:halshs-01555623&r=hme
  13. By: Joël Ntsondé (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Franck Aggeri (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique)
    Abstract: In order to develop more sustainable projects and deal with the current global environmental crisis, an increasing number of actors are willing to set up models of circular economy and need to develop cooperative approaches to handle the complexity inherent to these models. However, in management literature, the field of collective strategies and inter-organizational cooperation is relatively emerging and still need to be expanded, especially regarding sustainable development issues. So the underlying question we address in this paper is to determine which processes socio-economic actors rely on to build up these collective strategies and inter-organizational cooperation. Empirically, our research focuses on food waste reduction initiatives, using a qualitative method to study several projects which aimed at applying models of circular economy to the food production and distribution chain in Paris Region in France. This research led us to identify a new form of collective action that we outline by introducing the concept of responsible innovation ecosystem. This concept can be used in management to understand how heterogeneous actors can cooperate to develop innovative and sustainable projects.
    Keywords: heterogeneous actors,innovation ecosystem, inter-organizational cooperation, responsible innovation, collective innovation, circular economy, food waste
    Date: 2017–06–21
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-01494661&r=hme
  14. By: Kevin Levillain (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Blanche Segrestin (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Armand Hatchuel (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Among other challenges, hybrid organizations face a legal one as the law divides organizations into nonprofit and for-profit structures. For a few years however, new legal forms of corporations have emerged, whose claim is to overcome this challenge: profit-with-purpose corporations (PPCs), such as the Benefit Corporation. In this paper, we investigate how these innovative legal provisions have been designed to help solving this legal challenge, in a two-step process. First, we reexamine the origins of the legal divide through an historical analysis of the separation of UK and US corporations into two legal categories. We show that although early corporations were, in essence, profit-with-purpose organizations, business corporations have difficulties today to defend a public interest orientation because of a major shift in corporate governance that occurred in the 19 th century: the disappearance of corporate charters demanding public interest purposes, which led to hand the control of corporations over to shareholders through the generalization of fiduciary duties imported from unincorporated businesses' governance. Second, we exhibit the design process of PPCs to help solving this divide. We show that PPCs propose a way to " shift back ", yet not by restoring control by the State, but by reintroducing the corporate purpose into legal documents, and designing accountability mechanisms to control multiple purposes. We argue that studying the emergence of legal structures for profit-with-purpose organizations may open new avenues for research on hybrid organizations.
    Keywords: Profit-with-purpose Corporations,Hybrid organizations,Corporate law
    Date: 2017–06
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-01497085&r=hme
  15. By: Gaelle Petit (GENIAL - Ingénierie Procédés Aliments - INRA - Institut National de la Recherche Agronomique - AgroParisTech - CNAM - Conservatoire National des Arts et Métiers [CNAM] - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Gwenola Yannou-Le Bris (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec, AgroParisTech); Gilles Trystram (GENIAL - Ingénierie Procédés Aliments - INRA - Institut National de la Recherche Agronomique - AgroParisTech - CNAM - Conservatoire National des Arts et Métiers [CNAM] - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Amrine Lallmahomed (AgroParisTech)
    Abstract: To tackle sustainability issues, food value chain actors have to study the nature and objectives of the sustainable performance they want to achieve, both individually and also for the value chain as a whole. But they have different interests, goals and strategies. Consequently if they want to cooperate on a shared device because this represents a possible solution to improve the value chain sustainability, they need to find a way to meet a minimum level of each actor expectations. This case study is about possibilities for actors of a pork value chain representative of one type of French production to cooperate in sharing sustainability improvement solutions. The sustainable impacts of the value chain comprising a shared methanation plant with externalization of 3% of heat and 1% of electricity produced are described and analyzed. The multicriteria evaluation of the value chain is based on a life cycle analysis model with associated environmental and social indicators. The behavior of the methanation plant is simulated using Methasim tool and the input/output flows of the software are bridged to the LCA model. A focus is made on comparing the sustainable performance of two scenarios (standard i.e. without methanation plant and with shared methanation plant) and on confronting results with respective expectations of various players of the value chain in terms of sustainable performance. Is sharing a methanation plant a good solution for the economic actors of the value chain? How to create cooperation between the actors of a value chain in order to increase sustainability of their products and practices? The results and analysis will focus on each actor's contribution to the sustainable footprint and values destroyed or created. New intermediate solutions can be then proposed. The discussion is about methodological ways to facilitate the cooperation and the data flows to be exchanged between value chain actors.
    Keywords: Food,Actors,Sustainability,Indicators,Assessment,Cooperation,Value chain
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-01567341&r=hme
  16. By: Jean-Luc Moriceau (DEFIS - Droit, Economie, Finances et Sociologie - TEM - Télécom Ecole de Management - Institut Mines-Télécom [Paris])
    Abstract: La performativité des théories managériales se réfère à la capacité de celles-ci à ne pas seulement représenter ou expliquer le management mais à influencer, voire modeler, le comportement des managers dans le sens qu'elles prédisent.
    Keywords: Performativité,Management et numérique
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-01534257&r=hme
  17. By: May Gadallah (Cairo University); Maia Sieverding; Rania Roushdy
    Abstract: Cross-nationally, having a working mother during childhood is associated with more egalitarian attitudes among both adult men and women. However, no previous studies have explored this relationship in the Middle East and North Africa, where women’s employment rates have remained persistently low. In this paper, we examine the impact of having a working mother during childhood on Egyptian young people’s attitudes towards women’s roles in the public sphere, gender roles in the household, and ideals around number of children and women’s age at marriage that are related to gender roles. In order to address the potential endogeneity of mother’s work and attitudes formation, we use an instrumental variable approach with panel data from the Survey of Young People in Egypt 2009 and 2014 waves. Mother’s employment is instrumented using the governorate-level female labor force participation rate and percentage of women working in the public sector in 2009. We find that having a working mother during childhood led to significantly more egalitarian attitudes towards women’s roles in the public sphere among both young men and women. However, there was no effect on young people’s attitudes towards gender roles in the household. Having a working mother led to lower ideal number of children among sons, but did not have any effect on views of the ideal age of marriage for women among children of either gender. In the Egyptian context, having a working mother during childhood thus appears to led to more egalitarian attitudes around women’s roles outside the household but not necessarily their roles inside the household. This suggests that attitudes around gender roles in the household may be more strongly socially conditioned and thus less affected by individual experience, and is also consistent with the finding from labor market research that women continue to bear the brunt of housework and childcare in Egypt even when they are employed. Thus, while having an employed mother does have some liberalizing effect on individual attitudes, broader change in attitudes around gender roles both inside and outside the home may be needed in order to foster increased female labor force participation.
    Date: 2017–10–08
    URL: http://d.repec.org/n?u=RePEc:erg:wpaper:1125&r=hme
  18. By: Shehu Usman Rano, Aliyu
    Abstract: A major preoccupation of policymakers is the design and implementation of public policy for efficient resource mobilization, allocation, stabilization of the economy and redistribution of wealth to guarantee minimum standard of living for all. At the extremes, the Capitalist and Socialist systems are characterized by the supremacy of self-interest in the former and total state control in the latter. Exacerbated by the prevalence of riba in the systems, unwanted economic outcomes; social and economic inequality, poverty, unemployment, crimes, booms and recessions, thrive. The Islamic economic system which blends the material pursuit with spiritual upliftment tailors economic policies towards attainment of Maqasid al-Shari’ah. As a pillar of Islam and an omnibus instrument of economic stabilization, Zakah serves as an automatic catalyst with backward and forward implications on resource mobilization, allocation, stabilization and redistribution of wealth. Using a heuristic approach, the paper conducts an in-depth assessment of the socioeconomic impact of Zakah in an Islamic economy. Evidences from review of both classical and empirical literature unveil the positive impact of Zakah on consumption, savings, investment leading to employment and higher productivity, (Kahf 1980; Metwally 1983; Khan 1984;Ahmad, 1985; Kuran 2006; Azmi, 2009 and Norulazidah, Ali & Myles,2010. Further, Zakah acts as an expansionary tool to those at lower income level and a discretionary tool to those at higher income level to redistribute income, remove poverty and facilitates provision of desired public good for the benefit of the poor Faridi (1983). The paper posits that in view of the overwhelming empirical evidences in the literature, Zakah is an effective tool for tackling socioeconomic problems of our modern times.
    Keywords: Zakah, socioeconomic, resources allocation, stabilization, redistribution, poverty
    JEL: E62 I31 P24 Z12
    Date: 2017–09–01
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:81155&r=hme

This nep-hme issue is ©2017 by Carlo D’Ippoliti. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at http://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.