Theoretical studies and an empirical investigation of the system of zakat

This thesis contains two theoretical essays and one empirical essay relevant to zakat. Zakat on wealth is a religious tax or obligation that is imposed on Muslims who own wealth above the minimum exemption limit. It is levied on different types of wealth at 2.5 percent as a benchmark. Acting as a redistributive mechanism, the proceeds of zakat are then distributed among the poor and needy living within a country's boundary. In recent years, economists have discussed the economic effects of zakat particularly on consumption and investment. Most of the analysis of these studies was based on a static Keynesian model with varying conclusions.EThOS - Electronic Theses Online ServiceGBUnited Kingdo