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Economics of Ribā Al-Faḍl : Towards a Unified Analytical Model for Different Types of Ribā اقتصاديات ربا الفضل نحو نموذج تحليلي موحد لأنواع الربا

Author

Listed:
  • Sami Ibrahim Al-Suwailem

    (Head of Financial Product Development Centre Islamic Development Bank Group, Jeddah, Saudi Arabia)

Abstract

The paper proposes a simplified model of ribā, both ribā al- nasī’ah (debt ribā), and ribā al-faḍl. The model suggests that ribā al-faḍl when applied to necessary commodities, might lead to concentration of these commodities and increase in their prices. The model is then applied to debt ribā to analyze its economic consequences. The paper concludes that both types of ribā share some essential features, but they differ in the kind and magnitude of economic consequences. تقترح الورقة نموذجًا مبسطًا لتحليل جوانب اقتصادية لربا الفضل، بناءً على ما ذكره العلماء مثل: الغزالي وابن رشد حول حكمة تحريم ربا الفضل. وتستنتج الورقة من خلال النموذج المقترح أن ربا الفضل يمكن أن يؤدي إلى ارتفاع الأسعار وسوء توزيع الثروة. كما تطبق الورقة النموذج على ربا النسيئة (ربا القرض) وتستعرض بعض الآثار الاقتصادية السلبية المترتبة عليه. وتخلص الورقة إلى أن ربا الفضل وربا النسيئة يشتركان في أصل الانحراف وإن كانا يتفاوتان في حجم الأضرار المترتبة على كل منهما. وبناءً على ذلك يمكن صياغة نموذج موحد لتحليل الآثار الاقتصادية لكلا نوعي الربا.

Suggested Citation

  • Sami Ibrahim Al-Suwailem, 2016. "Economics of Ribā Al-Faḍl : Towards a Unified Analytical Model for Different Types of Ribā اقتصاديات ربا الفضل نحو نموذج تحليلي موحد لأنواع الربا," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 29(3), pages 183-203, October.
    • Handle: RePEc:abd:kauiea:v:29:y:2016:i:3:no:6:p:183-203
    DOI: 10.4197/Islec.29-3.6
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    References listed on IDEAS

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    1. K. J. Arrow, 1964. "The Role of Securities in the Optimal Allocation of Risk-bearing," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 31(2), pages 91-96.
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    More about this item

    Keywords

    Prohibition of ribā rationale; ribā al- faḍl; ribā al- nasī’ah; necessary component; luxurious component; wealth distribution; exchange. حكمة تحريم الربا، ربا الفضل، ربا النسيئة، القدر الضروري، القدر الكمالي، توزيع الثروة، التبادل.;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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