A Comparative assessment of the consumption function in selected Islamic and non-Islamic countries Monjazeb Mohammadrezaa, Baizidi Rahmanb, Niazi Issac aFaculty Member, Department of Economics, University of Economic Sciences bM.Sc. Student of Islamic Economy, Faculty of Economics, University of Economic Sciences cM.Sc. Student of Islamic Economy, Faculty of Economics, University of Economic Sciences, No. 3, Jahan Ave, Taleghani Ave, Tehran, Iran Abstract This study aims to estimate the consumption function in selected Islamic countries, whereby three theories in this area are tested. The three theories are: 1-The overall consumption of an Islamic society decreases due to the more Islamic limits of consumption compared with other communities. 2-Due to Islamic advices to assist the needy and the poor, and because the poor tend more to consume, the total consumption of the community rises. 3-There is no difference between them. To test the validity of these theories, we extract the consumption function for selected Islamic and non-Islamic communities and compared the two groups together. Also, panel data is used for the period 2000–2013. The consumption model used in the study is the Modigliani Consumption model. The results suggest that the consumption function in selected communities has a significant difference with that of non-Islamic ones. Top Keywords Consumption function, Islamic countries, non-Islamic countries. Top |