An Empirical Analysis of the Relationship Between Services and Capital in the Case of Rumelia Cash Waqfs

Abstract

This study investigates the effects of cash waqf-financed services on capital levels in Rumelia from a long-term perspective by employing quantitative information obtained from cash waqf deeds. Specifically, it explores the determinants of capital levels, including religious services, financing of public goods, poor support, and family support. Regression analysis generated the primary method of this study to achieve these goals. The findings reveal that religious services and family support are the predominant functions financed by cash waqfs, while financing public goods and assistance to the poor are less common. The quantitative analysis suggests that the coefficients for former services are positive and insignificant, although the effect of financing public goods is negative and insignificant. However, poor support had a positive and significant effect on capital levels. Overall, this study's findings challenge the widely accepted notion in the literature that financing public goods and assistance to the poor are prevalent in cash waqfs in Rumelia. Keywords: The Ottoman Empire, Rumelia, Cash Waqfs, Capital, Services JEL Classification: N2, N25, N85, N95