Authors
1 Associate Professor, Emam Hossein University
2 Ph. D. Candidate in Economic, Payam Nour University
Abstract
Discussion of the issues and ideas about consumption is important to the economic literature and there are many books and papers in the field. In the other hand Islamic Economics has specific view in the consumption that distinguishes it from conventional theories. However, there are important issues about consumption which are suggested in Islamic Economics. There are two important principles which distinguishes Islamic Economics from conventional economics. These principles include:1) expenses related to the Infaq 2) Prohibition of Israf. The main purpose of this paper is to survey consumer behavior and its optimization according to the mentioned constraints, using the Dynamic Programming Methods. Finally, after modeling it is specified that in the euilibrium path the marginal utility of consumption equals the marginal utility of infaq and the expected rate of return (as of Islamic Finance) and rate of time preference influences the consumption and infaq.
Keywords
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