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Religious Prohibitions Against Usury

Author

Listed:
  • Reed, C.G.
  • Bekar, C.T.

Abstract

Religious prohibitions against usury constitute a tie-in between religious reward and the use of charity and reciprocal exchange to smooth consumptiopn. We argue that prohibitions will occur when the following apply: consumption smoothing is requied for the survival of the population; charity and/or informal pooling ("informal insurance") are necessary to solve the consumption smoothing problem; solving the problem; is the responsability of the monopoly religion; consumption via the capital market poses a threat to charity and informal pooling.

Suggested Citation

  • Reed, C.G. & Bekar, C.T., 1997. "Religious Prohibitions Against Usury," Discussion Papers dp97-07, Department of Economics, Simon Fraser University.
    • Handle: RePEc:sfu:sfudps:dp97-07
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    More about this item

    Keywords

    RELIGION ; CONSUMPTION;

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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