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Analysis of the non-linear effect of zakat on income inequality in Iran (with an emphasis on the thoughts of Imam Ali)
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Moloud Jafari1   , Bahareh Maleki2 , Maryam Jafari2 |
1- Assistant Professor of Economics, Faculty of Law and Economics, Khomeinishahr Branch, Islamic Azad University, Khomeinishahr/Isfahan, Iran. , moloud.jafari@yahoo.com
2- Assistant Professor of Economics, Faculty of Law and Economics, Khomeinishahr Branch, Islamic Azad University, Khomeinishahr/Isfahan, Iran. |
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Abstract: (147 Views) |
In Islamic countries, zakat is one of the most important Islamic incomes, the correct collection and distribution of which can have many positive effects, such as the elimination of poverty and income inequality, the reduction of class differences among members of the society, as well as the growth and prosperity of the Islamic society. The main purpose of this article is to investigate the effect of zakat threshold on income inequality in Iran with emphasis on the thoughts of Imam Ali during the period of 2001:4- 2021:1. For this purpose, the Gini coefficient variable was used for income inequality, and the Smooth transition regression (STR) method was used to estimate the threshold. The results showed that zakat is a function of income inequality with two transition variable breaks. The threshold limit of the transition variable is equal to 0.222%, which shows the transition point of the Gini coefficient function and the beginning of the second limit regime. The results of zakat coefficients have a negative effect on income inequality in both regimes, but this effect has been greatly strengthened in the second regime. The first interval of the dependent variable of the Gini coefficient had a positive effect on income inequality in the first regime, but it did not have a significant effect in the second regime. The result of the per capita production and its interruptions were positive in the first regime and negative in the second regime. The result of trade in both regimes shows the positive effect of trade on income inequality. The result of good governance index coefficients in both regimes is negative on income inequality and this effect has been strengthened in the second regime. |
Article number: 10 |
| Keywords: Zakat, Tax, Income Inequality, Gini Coefficient, Good Governance |
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Full-Text [PDF 1064 kb]
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Article type: Research |
Subject:
Special
Received: 2024/07/24 | Accepted: 2024/09/25 | Published: 2025/02/28
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