Norulazidah, D.H.; Ali, P.H. Omar; Myles, Gareth - Business School, University of Exeter - 2008
The payment of zakat by the owners of wealth is one of the five pillars of Islam. Many countries operate with no enforcement of the obligation to pay, making zakat a form of voluntary redistribution. We analyze how zakat affects capital accumulation in a model that explicitly recognizes the...