Conventional Income Distribution

There are many combinations of value to consumers, Dagan production, and a combination of factors, consistent with the input efficiency. Indeed, there is a third terbatasan from consumers and the balance of production that generate Pareto optimal. There is a lot of Optimal point range limit the possibility of aggregate production. Therefore, Pareto efficiency is needed, but not one that meets the conditions for social welfare. Each Pareto optimal related to the distribution of income in a different economy. Some may involve a large imbalance of income. So how do we decide Pareto optimal which the most desired? The decision was made, both secretly and openly, when we set the function of social welfare. This function is the value of tangible decisions about the value to the inter-personal relationships. Social welfare function is a way of mathematics in the interest of relative states of individuals in the community.


A function to the welfare of the value (also called a welfare function Benthamite) up to the value of each individual in order to obtain the overall welfare of the community. All people are treated the same, the problem is not on the level of initial value to them. One unit of value for an additional order that the poor did not see any value greater than one additional unit of value in order for a millionaire who has all the wealth that he had to spend.
At the other extreme is the Max-Min proposed by John Rawls. According to the criteria of Max-Min, if the welfare Maximize value to the community members that have the most value to small is the largest. No economic activity will increase social welfare activities unless it improve the position of the members of the community worse (losers). Most economists define a function of social welfare is the middle between these two extremes.
Social welfare function is typically translated into the curve indiferens such a way that can be used in the same space as a graphical function that other inter-related. A curve indiferens social value to the Linear and slash to the bottom that leads to the right. Curve indiferens social Max-Min take the form of two straight lines that have formed so that a 90 degree angle. A social indiferens curve drawn from a social welfare function is between a slash to the bottom that leads to the right.

Read more »

Definitions Efisiensi Ekonomi Syariah

Efisiensi dalam pengertian Optimum Pareto yang netral nilai dan ekuilibrium modern juga tidak muncul dalam literatur Islam. Ini tidak berarti bahwa konsep efisiensi tidak dikenal. Konsep ini telah diidentifikasi dalam beberapa pengertian. Salah satunya adalah dalam pengertian usaha untuk melakukannya yang terbaik. Rasulullah saw. Menjunjung tinggi kualitas dengan menekankan ihsan kebaikan) dan itqan (kesempurnaan). Beliau mengatakan,”Allah telah mewajibkan kamu untuk berbuat baik (ihsan) dalam segala hal,” dan bahwa “Allah menyukai orang yang melakukan pekerjaan, ia melakukannya dengan sempurna”. Upaya untuk merealisasikan ihsan dapat melengkapi usaha melakukan itqan, dan keduanya bersama-sama dapat membantu mewujudkan penggunaan sumber-sumber daya manusia dan alam dengan cara yang paling efisien dan adil. Efisiensi juga perlu dalam berbagai konteks sementara sumber-sumber daya tidak boleh disia-siakan atau disalahgunakan karena adanya pertanggungjawaban kepada Tuhan. Menurut salah satu nasihat Abu Yusuf kepada Harun ar-Rasyid, yang didasarkan pada hadits, pertanggungjawaban ini berlaku bagi semua sumber daya, termasuk usia manusia, ilmu, kekayaan, dan semua kemampuan fisiknya. Pertanggungjawaban ini menuntut bahwa sumber-sumber daya dipergunakan untuk membantu memaksimalkan kesejahteraan manusia. Pertanggungjawaban ini berlaku bagi sumber-sumber daya, tidak pandang apakah itu SDM atau SDA, langka atau melimpah, mengandung biaya atau gratis (Zarqa,1980:4).

Dengan demikian, penggunaan sumber-sumber daya yang paling efisien dalam ilmu ekonomi konvensioanl dapat didefinisikan menurut Optimum Pareto, sementara dalam suatu perekonomian Islam akan ditentukan berdasarkan maqashid. Setiap penggunaan yang menggagalkan realisasi maqashid harus dipandang sebagai kesia-siaan dan inefisiensi (Faridi,1983:40). Sebagai contohnya, dalam ilmu ekonomi konvensional, konsep Optimum Pareto membolehkan penghancuran kelebihan output jika hal ini memungkinkan pelaku bisnis menahan penurunan labanya tanpa membuat konsumen menjadi lebih buruk (kondisinya) karena naiknya harga. Namun, cara seperti ini tidak dapat diterima dalam paradigma Islam karena perilaku seperti ini tidak hanya akan merusak sumber-sumber daya yang telah disediakan oleh Allah sebagai suatu bentuk amanah melainkan juga menimbulkan ketidakadilan kepada para konsumen. Meskipun usaha mempertahankan harga pada tingkat sekarang tidak dapat dibuat menjadi lebih bermanfaat jika kelebihan output tersebut tidak dihancurkan, harga akan turun atau kelebihan itu dapat dibagikan kepada orang-orang miskin. Begitu juga, waktu dan energi yang dipergunakan untuk shalat dan berpuasa akan tampak sia-sia jika dipandang menurut kerangka materialisme, karena hal itu akan menyebabkan, meskipun tidak selalu, penurunan output sehingga menghambat maksimalisasi output dan laba. Namun, jika dipandang dari sudut kontribusi si kaya yang akan dapat menciptakan character building dan peningkatan spiritual serta kesejahteraan manusia, maka shalat dan puasa sesungguhnya memiliki keunggulan positif. Barangkali karena alasan ini, dan alasan lain, seperti yang ditunjukkan sebelumnya bahwa salah satu qaidah ushul membolehkan penetapan suatu pengorbanan privat yang lebih sempit untuk mendapatkan kemaslahatan public yang lebih besar. Umumnya para ulama memandang bahwa syariat, dengan strategi dan nilai-nilai moral yang disediakan untuk menanamkan nilai-nilai ini secara efektif dalam masyarakat, bukan saja akan membantu menjamin keadilan dan kesejahteraan bagi semua, melainkan juga mendorong kemajuan manusia. Al-Mawardi mengindikasikan bahwa ajaran-ajaran Islam telah terbukti menjadi fondasi yang solid bagi peningkatan dan stabilitas di dunia. Ibnu Khaldun juga menekankan bahwa sebuah negara tidak dapat mencapai kemajuan dan kekuatan kecuali dengan menerapkan syariat (Chapra, 2001:61).

Read more »

Conventional understanding of Economic Efficiency

Most economists use the Pareto efficiency, as the destination of their efficiency. According to the size of social welfare, a situation is optimal only if no individual can be made better without making others worse. Ideal conditions this can only be achieved if the four criteria are met. The average marginal substitution in consumption should be identical for all consumers (no consumer can be made better without making consumers more than the other bad). Average production in the transformation should be identical for all products (is impossible to increase production of goods every good without reducing the production of goods other) resources, marginal cost must be equal to marginal revenue product for all of the production process (marginal physical product of a factors must be the same with all the companies that produce goods a) Average marginal consumption should be substituted with the average marginal transformation in production. (the production process must be in accordance with the desire consumers) There are a number of conditions which, most economists agree, can not efficiently include: the structure of the market that are not perfectly (such as monopoly, monopsoni, oligopoli, oligopsoni, and competition monopolistik) is not efficient allocation of factors ( see the basic theory of production), and the failure of market externalities (see also the social cost), price discrimination (see also skimming price), penuruanan cost the average long-term (see natural monopoly), and several types of tax rates. To determine whether an activity is to propel the economic direction of Pareto efficiency, the two test compensation already developed, every change in the generally make some people better while other people are not worse, then the test is to ask what will happen if the winners to change the compensation to the loser. Using the criteria Kaldor an activity will contribute to Pareto optimal if the maximum number of winners ready to pay more than the minimum number of ready-received by the losers.
Under the criteria Hick, an activity will contribute to Pareto optimal if the maximum number of losers is prepared to offer to the winners in order to prevent changes that are less than the minimum number of winners is prepared to accept a bribe to cancel the change. Test to see Hick compensation from the perspective of losers, while the test to see Kaldor compensation from the perspective winner. If both conditions can satisfy the loser and the winner of both the victors and losers will agree that the proposed activity will propel the economy toward Pareto optimal. This is known as the Kaldor-Hicks efficiency criteria or Scitovsky.

from :msuyanto.com

Read more »

Conventional approaches Economic Prosperity

Because of this emphasis on justice, the fuqaha has put a number of qaidah ushul (legal Maxim), which can help realize prosperity for all in the way that a balanced and fair. Among the rule-rule is as follows:

1. A loss or sacrifice private ditimpakan can to save the loss or sacrifice public, and a smaller maslahat that can be sacrificed to realize the greater maslahat
2. A loss is greater slide is replaced by a smaller loss. The majority occurred in the greater priority should be improvement of the minority that is more narrow; improvement of public improvement should be private
3. The danger must be removed as far as possible

All qaidah ushul above clearly contrary to the concept of Pareto optimal solution that does not recognize any of the demands sacrifice of a small group (the rich) to improve the welfare of the many (poor people). Therefore, this concept under any circumstances, may not get a high position in the paradigm of welfare economics of sharia, such as that to obtain the economic welfare of the conventional (Chapra, 2001:59).

from :msuyanto.com

Read more »

Economic Welfare understanding of Sharia

Economic prosperity is only on the conventional material welfare alone, ignoring the moral and spiritual welfare. Economic welfare of sharia aims to achieve human welfare, the welfare of the material, moral and spiritual welfare. The concept of economic prosperity based on the sharia not only manifestation of economic value, but also moral and spiritual values, social values and political Islamic values. Thus, the economic welfare of sharia have a more comprehensive concept (Mannan, 1970:358).
Economic welfare of sharia can be defined as a branch of economics that help realize the human welfare through an allocation and distribution of resources in time with a rare goal, without restrain the freedom of individuals, creating macroeconomic balance and the ongoing ecological, or weaken family solidarity and social and network of moral community. Goals encourage human welfare will help provide a clear direction for both theoretical discussion and policy prescriptions (Chapra, 2001:108).


from :msuyanto.com

Read more »

ECONOMIC WELFARE SYARIAH

Conventional understanding of Economic Welfare

Economic Prosperity is a branch of economics that uses micro-economic techniques to determine the efficiency of the allocation from the same time macro-economic and income distribution consequences associated with it (O'Connel, 1982). Economic prosperity is the framework used by most economists to evaluate the public to the desired income communities (Rosen, 2005:99). Economic prosperity provides the basis for assessing the performance of the markets and policymakers in the allocation of resources (Besley, 2002). This definition is of value to the allocation of (utility) that can be achieved in a society subject to the constraints of technology and cuisine.
Economic prosperity try to maximize the level of social welfare with the economic activities of individuals in the community. Economic welfare have regard to the welfare of individuals, as the opponent groups, communities, or the economic welfare of people assume that the individual is the basic unit of measurement. Economic prosperity also assume that the individual is the best judge for the welfare of their own, the people will enjoy greater prosperity than smaller welfare, and welfare can be measured both in terms of monetary or as a relative preferences.
Social welfare refers to the overall status of the order for the community. Social welfare is often defined as the addition of the welfare of all individuals in the community. Welfare can be measured either in the cardinal dollars (rupiah) or "utils", or measured by Ordinal in the terminology to the relative value. Method cardinal is rarely used today because of the problems that make the aggregate accuracy of the method is questionable. There are two sides of economic prosperity, namely economic efficiency and income distribution. Economic efficiency is more extensive and positive dealing with "the size of the cake." Income distribution is far more normative and dealing with the "division of the cake."


from :msuyanto.com

Read more »