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Rethinking economic decision-making: an Islamic conceptual framework

Author

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  • Muhammad Sholihin

    (Institut Agama Islam Negeri (IAIN) Curup, Department of Islamic Economics)

Abstract

This article proposes a novel conceptual framework for understanding economic choice from an Islamic perspective, highlighting how theological and normative considerations shape decision-making differently from conventional economic rationality. Employing two primary approaches, the study examines theological debates within Islam regarding human agency, action, and interpretations by Islamic scholars of Islamic turats (classical scholarly legacy) and Quranic references to “choice.” The findings reveal that economic decisions in Islamic economics diverge significantly from conventional models, emphasizing an Islamic worldview where choices are not solely grounded in rational self-interest but are also guided by theological and ethical considerations. This distinct approach highlights the importance of integrating theological and ethical factors into economic decision-making frameworks, aligning them with the principles of Islamic economics. The study offers valuable insights for practitioners and policymakers in Islamic economic systems. It contributes to the literature by reimagining rationality in economic behavior through the lens of Islamic theology and ethics.

Suggested Citation

  • Muhammad Sholihin, 2026. "Rethinking economic decision-making: an Islamic conceptual framework," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 73(1), pages 1-22, June.
    • Handle: RePEc:spr:inrvec:v:73:y:2026:i:1:d:10.1007_s12232-026-00529-x
    DOI: 10.1007/s12232-026-00529-x
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    References listed on IDEAS

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