Micro Economics is the application of economics in individual behavior as consumers, producers and as workers, as well as the implications of government policy to influence the behavior. While Macro Economics is the science of economics which studies the working mechanism of the economy as a whole (aggregate).
One of the drawbacks of conventional economics is the absence of a clear relationship between the objectives of macroeconomic and microeconomic. Islamic Economics is also trying to overcome this weakness by building the foundation for macroeconomic micro. However, these efforts have not completely fulfilled, the Islamic microeconomics is still groping in the new surface and discuss some key concepts, such as about self-interest, social interests, individual ownership, individual preferences, market mechanisms, competition, profit, utility and rationality. These concepts in a language similar to that of conventional economic dikemukan tends to give the impression that there is no difference, but in fact the foundation philosophy of the Islamic world view has given meaning and a different significance.
On the theoretical ground, there are some subjects of microeconomics that has become a study from the perspective of Islamic economics, among others:
1. Rationality Assumptions in Islamic Economics
- Expansion of the concept of rationality through transitivity requirements and the influence infak (alms) to the utility.
- Expanding the spectrum of utility by the Islamic values of halal and haram
- Loosening of the requirements of continuity, such as illicit goods demand emergency.
- Expanding the time horizon (as opposed to the concept of time value of money)
2. Demand Theory Islami
- Increased utility between lawful and unlawful goods.
- Corner Solution for halal-haram choice.
- Request for illicit goods in an emergency (not optimal)
3. Islamic Consumption Theory
- Consumption in Islamic Interporal
- Usury inverse relationship with the charity
- Inverse relationship with the savings ratio of final consumption
- Investment Savings
4. Islamic Production Theory
- Comparison of the effects of interest and for the results of the cost of production, income, and production efficiency.
5. Theory Offer Islami
- Comparison of the influence of the sales tax and commercial due to producer surplus.
- Internalisasi External Costs.
- Application Fee Compensation, the size limit, or recycling.
6. Islamic Market Mechanism
- The market mechanism according to Abu Yusuf, al-Ghazaly, Ibn Taymiyyah, Ibn Khaldun.
- The market mechanism Islami and Islami price intervention.
- Intervention price fair and unjust (version by Ibn Taymiyyah).
7. Market distortions Islamic perspective
- Distortion Demand and supply (Ba'i Najasy, Ikhtikar)
- Tadlis / fraud and Taghrir / uncertainty (quantity, quality, price, time)
8. Efficiency Allocation and Income Distribution
- Infak and utility maximization
- Superiority of the Islamic economic system
Discourse of microeconomics is still fundamentally flawed because it is often adopted from the model used in conventional economics that is not always consistent with the assumption paradigmatiknya. Moreover, empirical testing of these models is not possible now because of the lack of an economy that is truly Islamic or approach, and also the unavailability of data required for the test. Very few studies that show how the Muslim economic activity operates in the ancient times. In fact, empirical studies of modern Muslim societies in Muslim countries and non-Muslims from an Islamic perspective is also very rare.
However, this does not mean reducing the interest and enthusiasm we develop the science of Islamic Economics. Framework which has terintis hypothesis can serve as a useful purpose in providing a theoretical structure for the science of Islamic Economics and identify the strengths and weaknesses of an Islamic economy, when later it was already practiced in some countries. Only by developing appropriate microeconomic paradigm that will strengthen Islam is the unique identity of Islamic Economics. Therefore, "Construction of microeconomic theory under Islamic restrictions is the most challenging task in front of the science of Islamic Economics".
2 comments
Comment by Anonymous on October 31, 2012 at 11:38 AM
nice report;
Comment by Anonymous on October 31, 2012 at 11:41 AM
thankx
but explain more about consumption production according to islam