nep-isf New Economics Papers
on Islamic Finance
Issue of 2018‒05‒14
five papers chosen by
Halimatun Aris

  1. Alarming rise in predatory publishing and its consequences for Islamic economics and finance education By Hasan, Zubair
  2. Debt, equity, universal banking and Islamic finance: note By Hasan, Zubair
  3. Economic inequality and Islamic Charity: An exploratory agent-based modeling approach By Hossein Sabzian; Alireza Aliahmadi; Adel Azar; Madjid Mirzaee
  4. A közös ős nyomában: modern nyugati közgazdasági gondolkodás és az iszlám hagyomány By Olah, Daniel
  5. Risk measures in Islamic Banks MounaMoualhi 1 volatility of return on assets, volatility of return equity By Monia Ltaifa

  1. By: Hasan, Zubair
    Abstract: Purpose ― The aim of the study is to explore the causes and impact of predatory online publishing on Islamic economics and finance. Design/methodology/approach ― The method adopted involves a library literature scan to identify the origin and expansion of predatory publishing, as references listed in the paper show. The personal experience and observation of the author over the decades of teaching at various universities endorses the evidence. Findings ― The focus on “publish or perish” has led to a division of Islamic scholars into puritans and modern economists. It has also caused the overuse of mathematical and parametric modeling to the disadvantage of the discipline, which is essentially imbued with unquantifiable ethical norms and values. Practical implications ― The study seeks to induce fruitful and purposive change in the research designs and direction of Islamic economics and finance. Originality/value ― This research initiates discussion on predatory publishing, an issue so far untouched in the field of Islamic economics and finance. It explores the impact of the affliction on the discipline and suggests ways to curb the malady. Paper type Research paper
    Keywords: Predatory publishing; Econometric modeling; Islamic finance; Sociology of economics
    JEL: I2 I23
    Date: 2018–02–14
  2. By: Hasan, Zubair
    Abstract: This brief note looks at the suggested use of universal banking as a tool to mitigating risk in financing operations’ arising at both ends of the market – demand and supply. It concludes that the issue of adopting universal banking in the Islamic system is of little significance for risk reduction. It essentially raises the issue of mega banks versus smaller units in the Islamic system where the discretion would opt for the latter.
    Keywords: Equity versus debt financing; Universal banking; Islamic finance
    JEL: G21 G24
    Date: 2018–04–20
  3. By: Hossein Sabzian; Alireza Aliahmadi; Adel Azar; Madjid Mirzaee
    Abstract: Economic inequality is one of the pivotal issues for most of economic and social policy makers across the world to insure the sustainable economic growth and justice. In the mainstream school of economics, namely neoclassical theories, economic issues are dealt with in a mechanistic manner. Such a mainstream framework is majorly focused on investigating a socio-economic system based on an axiomatic scheme where reductionism approach plays a vital role. The major limitations of such theories include unbounded rationality of economic agents, reducing the economic aggregates to a set of predictable factors and lack of attention to adaptability and the evolutionary nature of economic agents. In tackling deficiencies of conventional economic models, in the past two decades, some new approaches have been recruited. One of those novel approaches is the Complex adaptive systems (CAS) framework which has shown a very promising performance in action. In contrast to mainstream school, under this framework, the economic phenomena are studied in an organic manner where the economic agents are supposed to be both boundedly rational and adaptive. According to it, the economic aggregates emerge out of the ways agents of a system decide and interact. As a powerful way of modeling CASs, Agent-based models (ABMs) has found a growing application among academicians and practitioners. ABMs show that how simple behavioral rules of agents and local interactions among them at micro-scale can generate surprisingly complex patterns at macro-scale. In this paper, ABMs have been used to show (1) how an economic inequality emerges in a system and to explain (2) how sadaqah as an Islamic charity rule can majorly help alleviating the inequality and how resource allocation strategies taken by charity entities can accelerate this alleviation.
    Date: 2018–04
  4. By: Olah, Daniel
    Abstract: This scientific essay aims to examine the relationship between Western mainstream economics and its Islamic counterpart. It shows that the creation of Islamic economics is a new scientific program, and representatives of this discipline do not agree on its methodological foundations. Islamic economics does not make a distinction between normative and positive scientific attitudes and sets the influence of human behavior as one of its important goals. To prove that there is potential for future convergence the author argues that the „Schumpeterian gap” in history of economic thought does not exist. Analysing the thoughts of Ibn Khaldun, the paper sets the ground for a new paradigm by representing Khaldun as a common ancestor of Western and Islamic economics.
    Keywords: history of thought, islamic thought, Ibn Khaldun
    JEL: B11 B31
    Date: 2016–11
  5. By: Monia Ltaifa (Université de Sfax)
    Abstract: The aim of this study is to examine empirically the variables of the risks of Islamic banks in the Gulf countries. Methodologically, we use a sample of 23 Islamic banks during the period from 2007 to 2012. From the empirical findings, we can show that the variablevolatility of return on assetsand the regulatory variable explains the banking risks. Nous avons aussi montré que la taille influence les risques bancaires.We have alsoshownthat size influences bankingrisks. In addition, we find that the sizeinfluences banking risks.It has allowed us to see that the big banks can invest in more risky projects.
    Date: 2018–01–01

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