Research Institute of Hawzah and University; (Hawzah wa Dāneshgāh Research Institute) Methodology of Social Sciences and Humanities 1608-7070 24 95 2018 06 22 Two Different Methodological Aspects of Pareto Optimality and Their Correspondence with Islamic Instructions [in Economics] Two Different Methodological Aspects of Pareto Optimality and Their Correspondence with Islamic Instructions [in Economics] 7 19 1454 10.30471/mssh.2018.1454 FA Muhammad Hussein Karami Assistant Professor at Research Institute of Hawzeh va Daneshgah 0000-0002-3116-4273 Journal Article 2018 03 02 Welfareeconomics seeks to explain how to maximize welfare of society. It is noteworthy to mention that the two processes of allocation of resources and distribution of resources are of a significant role in the explanation. However, there exists a methodological difference of opinion as to which of these two processes Pareto optimality (efficiency) belongs. Does Pareto optimality refer to the way in which the highest level of [Gross] national product, i.e. optimal allocation, is achieved? Or does it speak of the distribution of the beginning inventory among individuals or of distribution of welfare in terms of Social Welfare Function? The allocative aspect, though not known as distribution, carries with it a concept of distribution of a product which is in close relationship with determining the relative price of each input and with the rights of those who are the owners of the factors of production. The distributive aspect of welfare economics is concerned with the distribution of the factors of production or with the beginning inventory. In this connection, it is made clear to what extent the utility is important for individuals and what the criterion for degrees in poverty or richness is. Having explained these two aspects, the article attempts to have a cursory glance at the Islamic view of each of these two aspects of welfare economics Welfareeconomics seeks to explain how to maximize welfare of society. It is noteworthy to mention that the two processes of allocation of resources and distribution of resources are of a significant role in the explanation. However, there exists a methodological difference of opinion as to which of these two processes Pareto optimality (efficiency) belongs. Does Pareto optimality refer to the way in which the highest level of [Gross] national product, i.e. optimal allocation, is achieved? Or does it speak of the distribution of the beginning inventory among individuals or of distribution of welfare in terms of Social Welfare Function? The allocative aspect, though not known as distribution, carries with it a concept of distribution of a product which is in close relationship with determining the relative price of each input and with the rights of those who are the owners of the factors of production. The distributive aspect of welfare economics is concerned with the distribution of the factors of production or with the beginning inventory. In this connection, it is made clear to what extent the utility is important for individuals and what the criterion for degrees in poverty or richness is. Having explained these two aspects, the article attempts to have a cursory glance at the Islamic view of each of these two aspects of welfare economics https://method.rihu.ac.ir/article_1454_2e4dd7bc2dcc2d093af5fff25bb2f1a3.pdf