Tag Archives: Lifecycle Income Hypothesis

Intertemporal Consumption in Islamic Economic Framework

Salman Ahmed Shaikh A typical lifecycle pattern of humans shows that the need to consume basic necessities exists throughout the lifetime, while the capacity to earn incomes is present mostly during the working years of life. In childhood and old-age, … Continue reading

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Consumption Smoothing – An Islamic Economics Perspective

Salman Ahmed Shaikh It is an empirical observation that people desire to have smooth consumption throughout their lifetimes. Lifecycle consumption hypothesis (LCH) and permanent income hypothesis (PIH) try to explain that in micro-founded framework. Both negate the Keynes assertion that … Continue reading

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