Functional Income Distribution in Mainstream Economics and Shahid Sadr’s Opinions

In mainstream economics, "distribution" is one of the issues which is ignored because of being unresolved, and a new issue is propounded. First, the "functional distribution of income" was proposed, which is based on the determination of the share of production factors (at the micro level). Then, due to lack of proper response, from the early twentieth century, ideas changed to explain the new concept of "personal distribution of income" which is based on the income allocation among the households and individuals (at the macro level). In fact, the important question around the functional distribution of income which we are seeking to answer is "Who is the owner of the surplus value or the profit (positive and negative) in the production?". Shahid Sadr properly understood the importance of income and wealth distribution in leading the Islamic society towards its goals of justice. In his “Eghtesadona” book, he has extracted the system of "functional distribution of income," and the correct answer to this issue, in addition to the "personal distribution of income" based on the teachings of Islam. In this distributional system, interactions are not homogeneous and the basis for the share of factors of production is contracts and rules, which depends on real conditions of the economy. In this paper, the "distribution" issue in conventional economics is compared with the concepts developed by Shahid Sadr, using the comparative and library methods.