Comparative Study on Modern and Buddhist Economic Theories (The Concept of Buddhist Economics)

Comparative Study on Modern and Buddhist Economic Theories

(The Concept of Buddhist Economics)

Contents

01.            Introduction

02.            Definition on Modern and Buddhist Economics Theories   

ü Oxford Definition

ü Cambridge Definition

ü The Free Dictionary Definition

03.            Modern Economic Theories

04.            Buddhist Socio Economic Policies

05.            The Value of Ethical Basis Economic System Depicted in Buddhist teachings

ü MahadukkhakkhandaSutta

ü SankittadhanaSutta states Sevenfold Noble Wealth

ü CakkaSutta states Fourfold wealth

ü AnanaSutta gives Fourfold Noble Wealth

ü VaddhiSutta gives ten kinds of wealth

ü Dhammapada states that the Appamāda is the wealth

06.            Conclusion

07.            End Notes

08.            Bibliography

Introduction

Economic is one of the major part in modern world. Since the early period, economic had different methods and theories in the world. Earlier it had methods of Goods and exchanges of their own materials.[1]  Although, the economic conditions in early periods were very simple but gradually, in later periods it turn into more complicated because of human desires. Therefore, in modern world, there are numbers of economic problems are depicted. By concerning on economic crisis, different economists[2]  have submitted their ideals, principles, and solution as swift and most appropriate solution to overcome modern economic crisis. Unfortunately, still those theories are still not ripen their fruits and need to concern more about fruitful results to the modern world. While modern economic theories concern more about benefits of productions and consumptions, Buddhist teachings and theories on economic benefits are different from modern economic theories. By studying, both theories, this study concern more about most appropriate theories to overcome from modern economic crises. Under the theme of theories it concern more on four areas mentioned as follows.  

·         Production theory[3]

·         Consumption theory[4]

·         Utility theory[5]

·         Distribution theory[6]

Buddhist theories on economic concern more about what is harmful and beneficial in the range of human activities involving production and consumption. And ultimately tries to make human beings ethically mature. Buddhist economic thought in real sector economics which are directly related to people, in order to demonstrate their world.  The more mechanistic economics of finance and trade should be developed only after a firm foundation of the system can be tried and proven. The seven preliminary theories for Buddhist economics which serve as a framework to demonstrate viability and inspire further theoretical development and expansion. Contributions cover the core economic components of production theory, consumption theory, utility theory, and distribution theory. Additionally more offers three other theories which apply to time use, economizing, and work satisfaction.

Buddhist economics can be seen as a radical alternative to the Western economic mindset. Western economics represents a maximizing framework. It wants to maximize profit, desires, market, instrumental use, and self-interest and tends to build a world where “bigger is better” and “more is more”.

Furthermore, by comparing and contrasting this both ideals on economic theories. It further discuss on the most appropriate theories of economic to overcome from modern economic crisis.

Definition on Modern and Buddhist Economics Theories

Economics or economy is the social science that describes the factors that determine the production, distribution and consumption of goods and services. This term derive from ancient Greek words of οἰκονομία from οἶκος which means "house" and νόμος which menas "custom" or "law". Early it was used as term with political economy but later by economists changes it as economic science in 19^th century. In later, numbers of economists had define the concept of economics with different theories. They had interpreted, and explained the major functions or characteristic and theories of economics as follows.  

ü  Oxford definition

According to the Oxford dictionary defines economies as of a subject considered in relation to trade, industry, and the creation of wealth: economic history. It further says that the word economic denoted household management or a person skilled in this, hence the early sense of the adjective relating to household management.

Cambridge definition

The Cambridge dictionary defines the economy as the ​system of ​trade and ​industry by which the ​wealth of a ​country is made and used: the ​global economy the ​German/US economy the ​state of the economy a ​weak/​strong economy Tourism ​contributes millions of ​pounds to the ​local economy.

ü The free dictionary definition 

According to the Free dictionary defines the term of economics as follows: 

1.      The social science that deals with the production, distribution, and consumption of goods and services and with the theory and management of economies or economic systems.

2.      Economic matters, especially relevant financial considerations: "Economics are slowly killing the family farm".

Buddhist Economic

The Buddhist economics is simplicity and non-violence. Buddhists often tend to disregard economics completely, because the monastic way of life idealized by Buddhism is economically very minimalist. Such neglect of comment concerning economic values is not warranted, however, because the Buddhist scriptures are in fact rich with advice from the Buddha regarding sound economic values and they are applicable to monastic and lay lifestyles alike. Buddhists we would say that taking advantage of others economically, in whatever form, is unethical acquisition of wealth. Particular forms of livelihood which the Buddha advised to avoid in this respect are the five sorts of Unwholesome Livelihood (A.iii.207) mentioned below:

Unwholesome Livelihood

Trading in weapons

Trading in people

Selling live animals to the slaughterhouse

Trading in alcohol or intoxicants

Trading in poison

Table No: 01:  it shows the five ways of unwholesome earning in Buddhism

In Buddhism, It is not to say that there are no more than these five ways of unwholesomely earning a living but these are the main ones. Furthermore, Buddhism defines or recommended to cultivate below mentioned qualities to overcome of economic crisis.  

ü  Careful conservation Ārakkhasampadā

Careful conservation means skillfulness in the saving of wealth. Having earned wealth by the sweat of one's brow in a scrupulous way, a person should take good care of their wealth, not allowing it to be eroded away by unjust taxation, theft, natural disaster or unintended inheritance.

ü  Having virtuous friends kalyānamittatā

Having virtuous friends means surrounding yourself with a network of virtuous friends in all areas of your life. The sort of friends one should cultivate are those endowed with faith self-discipline, self-sacrifice and wisdom.

ü  Living within your means samajivitā

Living within your means skillfulness in spending. Those who realize the ease with which wealth can come and go, should lead their life in a way that is appropriate to their means not being extravagant but at the same time, not too spendthrift either.

In summary, Buddhist economic concern more about spiritual development rather than collecting material wealth. It does not mean that Buddhist teachings and ways are against to collect wealth but acclimating the wealth of spiritual development is much appreciated rather than material wealth. 

Modern Economic Theories

Numbers of economists have submitted their economic theories to the development of economic as well as overcome from economic crisis. According to their theories on economic are mentioned follows:         

ü  Supply and Demand (Invisible Hand)

ü  Classical Economics

ü  Keynesian Economics

ü  Neoclassical Synthesis (Keynesian for near-term macro; Classical for micro and long-term macro)

ü  Neo-Malthusian (Resource Scarcity)

ü  Marxism

ü  Laissez Faire Capitalism

ü  Market Socialism

ü  Monetarism

ü  Solow Model (growth comes from capital, labor, and technology)

ü  New Growth Theory (Romer & endogenous growth)

ü  Institutions and Growth (rule of law, property rights, etc.)

ü  Efficient Markets Hypothesis

ü  Permanent Income / Life Cycle Hypothesis

ü  Rational Expectations

ü  Rational Choice Theory

ü  Something Behavioral (e.g., Prospect Theory)

ü  Adverse Selection and the Lemons Problem

ü  Tragedy of the Commons

ü  Property Rights as a solution to the Tragedy of the Commons

ü  Game Theory (e.g., Prisoner’s Dilemma)

ü  Comparative Advantage

ü  New Trade Theory

ü  The Trilemma (exchange rates, capital flows, and monetary policy)

Supply and Demand is the main model of price determination used in economic theory. The price of a commodity is determined by the interaction of supply and demand in a market. The resulting price is referred to as the equilibrium price and represents an agreement between producers and consumers of the good. In general, according to the demand the supplement going on. Ex:

If in market people are demand to have meat rather than having vegetables then suppliers should supply Goods according to the demand of society it would less concern about good or bad effects to the society but the demand of society.

Game Theory is the study of mathematical models of conflict and cooperation between intelligent rational decision-makers. It is mainly used in economics, political science, and psychology, as well as logic, computer science, biology and poker. Originally, it addressed zero-sum games, in which one person's gains result in losses for the other participants. Today, game theory applies to a wide range of behavioral relations, and is now an umbrella term for the science of logical decision making in humans, animals, and computers. 

Anton Webern analysis has long shown the complex interplay between material development and ideological support or denial from religious groups. Buddhist doctrine appeared to provide active encouragement to the most striking of the newly emergent groups exploiting changed political and productive conditions, namely the merchants and farmers.

 The former group, while certainly not homogeneous, was not only developing into a major producer and disseminator of new kinds of Goods, but was also very active in promoting its own status and its concerns as being central to those of society. The perception that Buddhism provided an ideological support to this group leads us to confront a number of questions rising in part from the previous chapter: Why would an ascetic group disdainful of material wealth, and the motivations leading to its accumulation, give ideological support to such a group? Why would this group in return provide material support to the fledgling Buddhist group?  What kind of economy was it that allowed this group to emerge and apparently become so successful? To answer these requires us first to investigate the economic conditions of the time.

 It is difficult to envisage an ‘economy’ existing in the Buddha’s time. The economy is at best an abstract term used to categorize and describe particular aspects of human interaction. But economic activity is clearly described in Buddhist literature. We must, however, be constantly vigilant to avoid applying the terminology of contemporary economics to events and conditions that are distorted by the use of such technical terms. We assume, following Pearson, that ‘the economy at all levels of material existence is asocial process of interaction between man and his environment in the course of which Goods and services change form, are moved about and change hands. The shape of this process, i.e., its institutional form and the motives which make it run are determined not by any single factor either in nature or man, but are the resultants of several interdependent levels of human existence, ecological, technological, social and cultural. Taking this as a lead we treat social and economic conditions together, even at the risk of confusing two overlapping conceptual categories.

The Buddhist Socio Economic Policies

Buddhist economics is a “Middle way” of development, aiming to achieve maximum well-being with minimum consumption. Accordingly, the function of work should act as educational toward development of skills, a sense of community, and satisfaction through meaningful work. Monotonous or overly specialized work, thus, is a grave indignity to humanity. Labor should instead serve as the individual’s sense of fulfillment and satisfaction.

The process of mechanization, too, should be beneficial to humans through technology utilized to augment the individual’s capacity, rather than for it to serve as the central element of production. Buddhist economics serves to purify human character through challenging and meaningful labor, as opposed to a focus on maximizing production and consumption. It argues unsustainable consumption is a “destroyer of cultures”. Instead, mindfulness promotes resource conservation and environmental protection. Thus, this proposes small-scale, localized economies as the means to alleviate the world of the problems created by a system devoid of moral values.

Buddhist Economic implications of: impermanence requires the acknowledgment that wealth and possessions will not last and unduly attachment to these will only bring suffering. Causality is based on radiation, a function which suggests that the moral actions of a group of individuals can have a positive influence on the happiness and prosperity of the larger community in both the short-run and the long-run. It concludes that poverty is in no way virtuous as it leads to immoral actions such as stealing and violence. Wealth should be attained and maintained, however, in the principle of Right Livelihood and the consideration of generosity. Generosity, it argues, causally leads to greater wealth and social status in the future.

In Buddhist Economic System in Practice, Pryor asserts that the State’s ultimate aim should be to promote the “spiritual improvement” of a population. Income redistribution is one means, through reducing poverty which restricts spiritual growth. Pryor cites that virtuous action, such as generosity and other merits, supporting redistribution of wealth lead to an inevitable increase in the material wealth of the community. At the same time, regulation of the market is limited to activities which do not abide by right livelihood (no arms, drugs, etc.). Additionally, market competition is accepted as long as it is based on Right Intent and Right Action.

In Summary, Buddhist economics acts are an ethical policy. It suggests that enhances traditional economics in that it sees individuals as they are, not as an abstract concept. Additionally, the system itself is a process of education and recognizes the capacity for humans to change. Therefore, Buddhist economics is a guide rather than a theory, and is to be developed experimentally. It too, urges for spiritual happiness, not a happiness based solely on material conditions. Economists, can benefit the most from these values in determining viable applications to the present economics.

The Value of Ethical Basis Economic System Depicted in Buddhist teachings

Buddhism and Economics, being subjected to many discussions and many researches have being conducted on these by the Buddhist scholars and the economists. Here, it is quite doubtful whether there is anything left out to be discussed further. But, when the behavioral patterns and social phenomena are taken into consideration, it seems that despite all the researches that have been conducted, the issues of these fields remain still unsolved. The reason adduces for this is that the current society is not a place where morality is concerned.

As we are living in a society, we depend on each other. No one can stay alone. As a result of that, we have to face serious conflicts so as to keep our wealth protected. When the man tries to keep his wealth protected because of his craving for sense pleasure, there arise conflicts in the society. Mahadukkhakkhandasutta[7] states that there happen conflicts; disagreements; debates; blaming; taking arms; killings and so on between kings; Katriyās (Warriors and Rulers); Brāhmins (Priests and Teachers); Gahapatis (Householders); and between mother and children; father and children; brothers and sisters; and between brothers; sisters and friends.[8] When Mahadukkhakkhandasutta states how conflicts arise in the society, Bahuvedaniyasutta [9] states what should be done not to arise such situations in the society. In the Sutta, the Buddha mentioned to Ven. Ananda that He has well preached the Dhamma, if the followers accept them and practice them well, they can live in a peaceful society where there is no crimes; conflicts; disagreements; and so on.[10] When the factors are considered there is no severe difficulty for earning wealth but the difficulty is with living peacefully.

Therefore, the first thing we should understand is that we are linked with whatever around us whether material or immaterial, or animate or inanimate. The world is like a wheel with its spokes and the hub. All the things that exist in the world, whether they are subjected or objected, should be concerned. Nothing can be neglected. When the natural phenomena are concerned, they do not do any harm to the natural occurrences. But human beings are the most harmful moving equipment that does the serious damages to the natural process of the world. Considering the human beings as the most harmful moving equipment they should be groomed. The people lived during the Indus Valley Civilization did not want to overpower the natural phenomena. Their sole aim was to survive. However, with the development of the human brain they wanted to defeat the natural phenomena that cannot ever be performed. Buddhism, considering all the human needs and all the human activities, has introduced the ethical conducts that should be performed by the individual for the sake of himself, the world and the being.   

As human beings we need to lead a life of wealthy. Therefore, as the people in the society, the first thing we should understand is what wealth really is. Unless we understand the meaning of wealthy and the meaning of life, a discussion on a sound economy would be ineffective. With regard to wealth, we can put forth the following questions.

ü  What is the wealth?

ü  Is the money wealth?

ü  Is the property wealth?

ü  Is the treasury wealth?

All these are controversial. None of them could be considered wealth. However, the people live in this world believe that wealth is nothing but money, property, treasures etc. But in the Buddhist teachings, wealth is interpreted indifferently. For the purpose of discussing what wealth really is, I have quoted some of the facts given in various Suttas, below. 

1. Sankittadhanasutta[11] States Sevenfold Noble Wealth.[12]
2. Cakkasutta[13] states Fourfold wealth.[14]
3. Ananasutta[15] gives Fourfold Noble Wealth.[16]
4. Vaddhisutta[17] gives ten kinds of wealth.[18]
5. Dhammapada states that the Appamāda is the wealth.[19]

'Wealth' for the Buddha matters not only for mundane happiness but also supra-mundane happiness. Sankittadhanasutta[20] in Anguttara Nikaya states Sevenfold Noble Wealth[21] (saptārya dhana).

1. saddhā            - Faith
2. sīla                   - Virtue
3. hiri                  - Shame of Blame
4. ottappa            - Fear of Blame
5. suta                 - Listening
6. cāga                - Gifting
7. paññā              - Wisdom

According to the Sutta, wealth is sevenfold. Here, in the Sutta, the Buddha has emphasized that the path to the Nibbāna is the highest achievement that can be obtained by following the seven states such as saddhā, etc. In the initial stage we need saddhā to begin our journey to the final bliss. In that sense it becomes a wealth. With regard to the sevenfold noble wealth the Paññā is the final and it is the highest. Therefore, to the individual who follows the supra-mundane life these seven become the wealth. 

Cakkasutta[22] states Fourfold wealth[23] out of which three are related to the current life and the last, to the previous lives.

1. patirūpadesavāso          -  Living in a peaceful area
2. sappurisupassayo          - Associating with worthy friends
3. attasammāpanidhi         - Connected with profitable deeds
4.  pubbe ca katapuññatā - Having previously done merits

Mangalasutta also gives the same and the only difference that can be seen is sappurisupassayo which is replaced with panditānañca sevenā. The fourfold wealth that is given in Cakkasutta is considerable for the attainment of the final liberation. Though these facts are directly connected with the liberation, they are even relevant for the mundane life. As long as we lead a happy mundane life, no liberation could be available. On the one hand, if the whole society is threatened by various dangers, it would not be a place for safe meditation. On the other hand, if the people have nothing to offer as daily requirements for the ascetics or monks, they (ascetics or the monks) cannot practice meditation. The great wisdom is such which cannot be obtained through starvation. The place we live in should be very peaceful with enough daily requirements, otherwise no happiness in mundane or supra-mundane could be gained.

In Sappurisavagga and various Suttas in Anguttara Nikaya prominence is given to the sappurisupassayo.  This is very essential even to the mundane people. In Sigālovādasutta different kinds of friends are introduced and the benefits that can be obtained with the association of a good friend are mentioned. Since we depend on each other in the society, the friends with whom we make relationships should be carefully chosen. 

According to the seeds grown, we can reap the harvest.[24] The results, be them profitable or unprofitable, could not be made realistic, until the plans developed in discussions are properly implemented. They should be practiced. Depending on the results we can reform, change or continue the plans. Therefore, attasammāpanidhi (Connected with profitable deeds) is placed next by the Buddha. Here, what we should practice is that what gives good results. In Assalāyanasutta[25] the statement made by the Buddha is applicable in this context. "Having been a master, one may become a slave, and having been a slave, one may become a master"[26] is the statement made by the Buddha. On the one hand, the wealth can decide the status of a man, whether he is a master or a slave. On the other hand, the occupation or the duty of the man can decide whether he is an outcast or not according to the factors given in Vasala Sutta[27]. In this regard, man should be conscious with regard to his occupation because it should be beneficial to himself and others as stated in Ambalatthikarāhulovaādasutta[28]. Therefore, attasammāpanidhi (Connected with profitable deeds) is a substantial point to the individual in search of money. When the facts are concerned, the individual should understand what sort of occupation he should prefer. There were individuals who could not realize the correct form of occupation. As a result of that the Buddha had to emphasize kinds of occupations that should be abandoned by the Upāsakās. Therefore, no room is given in Buddhism to practice five kinds of abandoned occupations.[29] The occupations or trading abandoned by the Buddha are:      

      i.          Sattha vanijjā                - selling weapons

    ii.          Satta vanijjā                  - selling animals

  iii.          Mansa vanijjā               - selling flesh

  iv.          Visa vanijjā                    - selling poisons

    v.          Majja vanijjā                 - selling liquor

The fourth wealth, Cakkasutta states, is pubbe ca katapuññatā (having previously done merits). Mangalasutta[30] also gives pubbe ca katapuññatā as a fact of protection. This is confirmed with the facts mentioned in the Cullakammavibangasutta[31]. This is a crucial point in this article. In economic condition no priority is given to the kamma. Here, the meaning of the term kamma is not mere action. It is the result of previously done actions. That is what it is mentioned in the Cullakammavibhangasutta. The kamma can decide whether the individual is high or low.[32] It is true that the kamma cannot decide the future and everything does not happen according to the previous kamma. But kamma should not be forgotten since it has been a part of Niyāma Dharmas. 

Buddhism accepts the kamma and its results. Therefore, Andhasutta (dvicakkhu)[33] introduces the two fold development of the individual. One is the knowledge to acquire wealth unattained and the second is to see the states that are praiseworthy. When the first directs the individual towards the financial development, the second directs him towards the moral development. Both the financial and ethical development should be balanced.

Not only had the Buddha paid his attention on earning money but also on the consumption. Consumption is directly related to the ethics. Kāmabhogisutta[34] introduces ten persons involved with sense pleasure. Among them the tenth person is highlighted as the best, chief, topmost, highest and supreme. This person is praiseworthy because of the following five qualities:

        i.       Seeks after wealth lawfully, not arbitrarily

      ii.       Makes himself happy and cheerful

    iii.       Shares his wealth with others

    iv.       Does meritorious deeds

      v.       Makes use of his wealth without greed and longing, without infatuation, heedful of the danger and alive to his own salvation.

In this way what he earns should be spent on himself, wife and children, parents, brothers and sisters, friends, relatives, neighbors, clergies (Samana Brāhamas) and the poor.  The man should live in the society happily. For the happiness of the mundane life he needs wealth. Fourfold Noble Wealth of the wordings[35] delivered by the Buddha to Anāthapindika[36] states in Ananasutta.[37]

1.    Atthisukha        - when a person acquires wealth by means of righteous, he has a great sense of economic security and self-esteem.

2.    Bhogasukha     - the feelings that he could spent wealth as he wishes on himself, family, friends, relatives, workers and meritorious deeds

3.    Ananasukha     - the feeling that he is free from debts

4.    Anavajjasukha - the feeling that he has a life of purity in thought, words and deeds.

When the man lives in the world with these fourfold wealth, he can experience the mundane happiness. If the man is so greedy, he cannot experience any of these. To suppress his greed, he needs to practice morality step by step. The initial method that should be followed by an individual is the Threefold Meritorious Deed.[38] Being Dāna the first step towards the cessation of craving, in many Suttas it is given as the first. When the Buddha introduced the consumption, He has given priority to the giving or generosity in relation to the earning. The above mentioned Suttas show that how far the Buddha has concerned the giving when he divulged the economic prosperity. Cāga in Sankittadhanasutta; Bhogasukha in Ananasutta; the second, third and fourth factors, in Kāmabhogisutta; are examples to generosity.

In Buddhism the highest goal that can be attained by the individual is the Nibbāna. This cannot be attained by the individual until he is confident with the mundane need. Lay people are not like monks and nuns. They cannot obtain what they need from the others. At least four requisites (cloths, foods, shelters, medicines) cannot be accepted.[39] If they accept, they become beggars. Being a wealthy person, having the tenfold wealth mentioned in Vaddhisutta,[40] he can attain Nibbāna. In the Sutta, ten kinds of wealth, a noble possesses, are given.[41]

        i.            Kettavatthuhi vaddhati                                     - possession of land and goods

      ii.            Dhanadhaññena vaddhati                                - wealth

    iii.            Puttadārehi vaddhati                                        - wife and children

    iv.            Dāsakammakarāporisehi vaddhati                  - employees

      v.            Catuppadehi vaddhati                                      - four foot animals

    vi.            Saddhāya vaddhati                                           - faith             

  vii.            Silena vaddhati                                                 - morality

viii.            Sutena vaddhati                                                - education

    ix.            Cāgena vaddhati                                              - generosity

      x.            Paññāya vaddhati                                            - wisdom

Appamāda Vagga in Dhammapada states that the foolish ignorant folk spend their time unprofitably, heedless of perfection. The wise man guards heedfulness (appamādaµ) as his greatest treasure.[42] In creating a sound economy, idleness needs to be defeated. This is further evident with the facts found in Sigalovadasutta[43] that one finds excuses not to work saying:

                    i.            It is too early.

                  ii.            It is too late.

                iii.            It is too cold.

                iv.            It is too hot.

                  v.            It is too hungry.

                vi.            It is too full

Therefore, each society should be based on ethics. The ethical codes introduced in Buddhism should be practiced in achieving wealth and its consumption. If we neglect the ethics we have also neglected the happiness. 

Conclusion

To conclude, people need to deal their economic problems through the eyes of Buddhist Economics. Usually such matters are not the domain of expertise of a monk but when economics become such an implicit part of everyone's life, even monks cannot afford not to have a standpoint however, where monks do become involved in such matters, it should be in a way suitable for a monk.  By trying to gain insight into the reality of economics and waking people up to that reality, helping to train-up virtuous people and encouraging Buddhists truly to pursue perfections in the footsteps of the Buddha  spreading the wisdom of Buddhism far and wide, while helping to forge an amenable home ground for Buddhism.

By clarifying Buddhist principles relating to economics on the three levels of aim in life, it will be easier for Buddhist in conscience to know where compromises can be made and where compromises would be unscrupulous. What sort of wealth is worthwhile and what sorts undermine the fabric of society. It is also the hope that people will start to grasp that from the point of view of Buddhism it is not just money or economic figures parse that matters in economics but happiness on three levels of aim in life. Often things other than money can better bring happiness and from the Buddhist economic viewpoint we would say that the virtues mentioned that bring mental wellbeing or inner freedom are more valuable than money and it cannot  buy and so economically priceless.

End notes

---

[1] Material means farmer had food and carpenter has his own Goods. So early periods exchanges these materials.   

[2] An economist is a professional in the social science discipline of economics.

[3] Production theory is the study of production, or the economic process of converting inputs into outputs. Production uses resources to create a good or service that is suitable for use, gift-giving in a gift economy, or exchange in a market economy.

[4] Consumption is a major concept in economics and is also studied by many other social sciences. Economists are particularly interested in the relationship between consumption and income, as modelled with the consumption function.

[5] In economics, utility is a measure of preferences over some set of goods and services. The concept is an important underpinning of rational choice theory in economics and game theory, because it represents satisfaction experienced by the consumer of a good. A good is something that satisfies human wants.

[6] In probability theory, the normal (or Gaussian) distribution is a very common continuous probability distribution.

[7] M.N. Vol. i, PTS, p. 87

[8] Tassa ce bhikkhave kulaputtassa evam ugghahato ughagato vāyamato te bhogā abhinipphajjanti, so tesam bhogānam ārakkhādhikaraoam dukkham domanassam pagisamvediti:

Puna na param bhikkhave kāmahetu kāmanidānam kāmādhikaraöam kāmānameva hetu

Rājānopo rājūhi vivadati. Khattiyāpi khattiyehi vivadati. Brahmanāpi brāhmanehi vivadati. Gahapatīpi gahapatīhi vivadati. Mātāpi puttena vivadati. Puttopi mātarā vivadati. Pitāpi puttena vivadati. Bhātāpi bhātarā vivadati. Bhātāpi bhaginiyā vivadati.

Bhaginīpi bhātarā vivadati. Sahāyopi sahayena vivadati.

Te tattha kalahaviggahavivādāpannā aññamaññaµ pāöīhipi upakkamanti. Leddūhipi upakkamanti. Daödenapi upakkamanti. Satthehipi upakkamanti. Te tattha maraöampi tigaccanti maraöamatthampi dukkhaµ. Ayampi bhikkhave kāmānam ādīnavo…

[9] M.N., Vol. I, PTS, p. 397

[10] evaµ pariyāya desito kho ānanda mayā dhamme ye aññamaññassa subhāsitaµ sulapitaµ samanujānissanti, samanumaññissannti, samanumodissanti, tesametaµ pātikaµkhaµ: samaggā sammodamānā avivadamānā khīrodakībhūtā aññamaññaµ piyacakkhūhi sampassantā viharissantīti.

[11] Samkhittadhana Sutta, Dhanavaggo, Sattaka Nipatha, A. N. Vol. iv, BJM, p.284.  /A.N., Vol. iv., PTS, p.4 

[12] Sattimāni Bhikkhave, dhanāni. Katamāni satta:

Saddhādhanam, sīladhanam, hiridhanam, ottappadhanam, sutadhanam, cāgadhanam, paññādhanm

Imāni kho bhikkhave, satta dhanāni’ti.

[13] Cakka Sutta, Cakka Vaggo, Cakkanipāto, Dutiyabhago, Anguttara Nikāyo, Vol. ii, p. 66/ A.N., Vol. ii., PTS, p.31

[14] Patirūpadesavāso, sappurisupassayo, attasammāpanidhi, pubbe ca katapuññatā.

Imāni kho bhikkhave cattāri cakkāni, yehi samannāgatānaµ devamanussānaµ catucakkaµ vattati, yehi samannāgatā devamanussā na cirasseva mahantattam vepullattaµ pāpunanti bhogesūti.

[15] Anańa Sutta, A. N. Vol. ii, 69 / Ańguttaka Nikāya, Pattakamma Vaggo, Anańa Sutta, BJM, p. 130

[16] Bhogā me atthi ugghānaviriyādhigatā bāhābalaparicitā sedāvakkhittā dhammikā                                              dhammaladdhāti adhigacchati sukham, adhigacchati somanassam

Ugghānaviriyādhigatehi bhogehi bāhābalaparicitehi sedāvakkhittehi dhammikehi dhammaladdhehi bhoge ca bhuñjāmi puññānī ca karomīti adhigacchati sukham, adhigacchati somanassam,

Na kassaci kinci dhārema appaµ vā bahuµ vāti adhigacchati sukhaµ, adhigacchati somanassaµ, ... 

Anavajjenamhi kāyakammena samannāgato, anavajjena vacīkammena samannāgato, anavajjena manokammena samannāgatoti adhigacchati sukham, adhigacchati somanassam, …                

[17] Vaddhi Sutta, Anguttara Nikaya, Vol. VI,

[18] Kettavatthu, Dhanadhañña, Puttaddra, Dasakammakarâporisa, Catuppada, Saddha, Sila, Suta, Caga, Pañña

[19] Pamādamanuyuñjanti – bālā dummedhino janā

Appamādañ ca medhāvī - dhanam seyyham’va rakkhati

Dhammapada Verse. 26

[20] Samkhittadhana Sutta, Dhanavaggo, Sattaka Nipatha, A. N. Vol. iv, BJM, p.284.  /A.N., Vol. iv., PTS, p.4 

[21] Sattimāni Bhikkhave, dhanāni. Katamāni satta:

Saddhādhanam, sīladhanam, hiridhanam, ottappadhanam, sutadhanam, cāgadhanam, paññādhanam.

Imāni kho bhikkhave, satta dhanāni’ti.

[22] Cakka Sutta, Cakka Vaggo, Cakkanipāto, Dutiyabhago, Anguttara Nikāyo, Vol. ii, p. 66/ A.N., Vol. ii., PTS, p.31

[23] Patirūpadesavāso, sappurisupassayo, attasammāpanidhi, pubbe ca katapuññatā.

Imāni kho bhikkhave cattāri cakkāni, yehi samannāgatānaµ devamanussānaµ catucakkaµ vattati, yehi samannāgatā devamanussā na cirasseva mahantattaµ vepullattaµ pāpuöanti bhogesūti.

[24] Yadisam vapate bījam tādisam harate phalam -  Kalyānakārī kalyānam pāpakā ca pāpakm

Isayosamuddaka Sutta, Samyutta Nikaya, Vol. I, p. 404 / S.N. Vol. I, PTS p.226

[25] Aiyo hutvā dāso hoti, daso hutvā iyo hoti.

[26] An Approach to Buddhist Social Philosophy, Ven. Pathegama Gnanarama, Ti-Sarana Buddhist Association, Singapore, 1996, p.76

[27] S.n. PTS, p. 20

[28] M.N. Vol.i, PTS, pp.413-419

[29] Pañcimā, bhikkhave, vanijjā upāsakena akaraniyā, katamā pañca? Satthavanijjā, sattavanijjā, maµsavanijjā, majjavanijjā, visavanijjā

A.N. Vol. iii, PTS, p.208

[30]  S.n., PTS, p.47

[31] M.N. Vol. iii, PTS, p.206

[32] Kmmaµ satthe vibajati yadidan hinappanītatā

[33] Anda Sutta, Anguttara Nikaya, Vol. I, PTS, p. 129

[34] ayam imesam dasannam kâmabhoginam aggo ca settho ca pâmokkho ca uttamo ca pavaro ca

    Kamabhogi Sutta, Anguttara Nikaya, Vol. V, PTS, p. 177

[35] Bhogā me atthi ugghānaviriyādhigatā bāhābalaparicitā sedāvakkhittā dhammikā                                              dhammaladdhāti adhigacchati sukhaµ, adhigacchati somanassam

Ugghānaviriyādhigatehi bhogehi bāhābalaparicitehi sedāvakkhittehi dhammikehi dhammaladdhehi bhoge ca bhuñjāmi puññānī ca karomīti adhigacchati sukhaµ, adhigacchati somanassaµ, …

Na kassaci kinci dhārema appaµ vā bahuµ vāti adhigacchati sukhaµ, adhigacchati somanassaµ, ... 

Anavajjenamhi kāyakammena samannāgato, anavajjena vacīkammena samannāgato, anavajjena manokammena samannāgatoti adhigacchati sukham, adhigacchati somanassam, …                

[36] Anguttara Nikaya Vol. ii, p 130 BJM

[37] Anańa Sutta, A. N. Vol. ii, PTS, p. 69 / Ańguttaka Nikāya, Pattakamma Vaggo, Anańa Sutta, BJM, p. 130

[38] dāna, sīla, bhāvanā

[39] Civara, pindapata, senasana, gilampasa

[40] Vaddhi Sutta, Anguttara Nikaya, Vol. V, PTS, p.137

[41] dasahi bhikkhave vaddhihi vaddhamâno ariyasâvako ariyaya vaddhiyâ vaddhati sârâdâyi ca hoti varâdâyi kayassa katame dasahi

[42] Pamādamanuyuñjanti – bālā dummedhino janā

Appamādañ ca medhāvī - dhanaµ seÊÊham’va rakkhati

Dhammapada Verse. 26

[43] Sigalovada Sutta, Vol. II, Digha Nikaya, pp. 302

Bibliography

Primary Sources

ü  The Long Discourses of the Buddha: A Translation of the Digha Nikaya. Trans. Maurice Walshe. Boston. Wisdom Publication, 1987

ü  The Middle Length Discourses of the Buddha: A Translation of the Majjhima Nikaya. 3rd ed. Trans. Bhikkhu Nanamoli and Bhikkhu Bodhi. Boston: Wisdom Publication, 2009

ü  The Numerical Discources of the Buddha: A Translation of the Anguttara Nikaya, Trans. Bhikkhu Bodhi. Boston: Wisdom Publication, 2012

ü  The Connected Discourses of the Buddha: A Translation of Samyutta Nikaya. Trans. Bhikkhu Bodhi. Boston: Wisdom Publication, 2000

Primary Sources

ü  An Approach to Buddhist Social Philosophy, Ven. Pathegama Gnanarama, Ti-Sarana Buddhist Association, Singapore, 1996,

ü  Buddhist Economics, the original booklet of a talk given by the author at Thammasat University on March 9, 1989; translated by Dhammavijaya.

ü  http://www.centerforneweconomics.org/buddhist-economics, accessed on 2016.03.10. at 12:21 AM

ü  http://pioneer.netserv.chula.ac.th/~sprapant/Buddhism/buddhist_econ.html#Production and Non-production accessed on 2016.03.10. at 03:21 AM