nep-isf New Economics Papers
on Islamic Finance
Issue of 2020‒11‒30
three papers chosen by
Mohamed Mohamed Tolba Said

  1. Risk Adjusted Performances of Conventional and Islamic Indices By Abba AHmed, Bello; Isah I, Salamatu; Aliyu Chika, Umar
  2. Preventing violent Islamic radicalization: experimental evidence on anti-social behavior By Pedro C. Vicente; Ines Vilela
  3. The Review of Evolutionary Political Economy inaugural issue, part 2 By Silvano Cincotti; Wolfram Elsner; Nathalie Lazaric; Anastasia Nesvetailova; Engelbert Stockhammer

  1. By: Abba AHmed, Bello; Isah I, Salamatu; Aliyu Chika, Umar
    Abstract: The paper examined the risk-adjusted performance of Dow Jones and FTSE conventional and Islamic indices. The daily closing stock prices of 22 indices from January 2006 to December 2017 were selected from 11 countries comprising US, Europe, Canada, Japan, Turkey, Malaysia, China India, Qatar, Kuwait, and Taiwan. The returns of the series were first computed and then Sharpe ratio and Treynor index were used to analyze the data. It was clear that in some countries conventional indices out performed Islamic indices (US, Malaysia and Taiwan) whereas in others Islamic indices were better (EU, Kuwait, China and Qatar). The last category had inconclusive result this was because whereas the Sharpe ratio suggests a better performance of the conventional indices, on the contrary the Treynor ratio suggested that the Islamic indices performed better (Canada, Japan, Turkey and India).
    Keywords: Risk-adjusted measures, Islamic stock index, Conventional stock index, Sharpe ratio, Treynor index
    JEL: G11 G15
    Date: 2019–02–03
  2. By: Pedro C. Vicente; Ines Vilela
    Abstract: Violence perpetrated by radicalized Muslims is a major problem around the world. We collaborated with the main Islamic authority in Mozambique, which sponsored two randomized interventions to prevent violence related to youth radicalization: a religious campaign against extremist views of Islam, targeting change in beliefs; and a training module on entrepreneurship and employment, aiming to increase the opportunity cost of conflict. Our measurement focuses on anti-social behavior in a Joy-of-destruction lab game. We find that only the religious treatment decreased the propensity to destroy payoffs of others. Consistently, surveys show increased trust in state and decreased support for extremism.
    Keywords: Islamic radicalization, violence, conflict, political economy, experiment, joy-of-destruction game, Mozambique, Africa
    JEL: D74 O55
    Date: 2020
  3. By: Silvano Cincotti (UNIGE - University of Genoa); Wolfram Elsner (University of Bremen); Nathalie Lazaric (Université Côte d'Azur, CNRS, GREDEG (France)); Anastasia Nesvetailova (City University London); Engelbert Stockhammer (King‘s College London)
    Abstract: The present REPE issue 2-2020 is the second part of our inaugural "double pack". We were lucky to receive more papers for the inaugural issue than we could accommodate in one issue. So please enjoy another set of challenging original research papers gauging the field of evolutionary political economy. In Financialisation and the periodisation of capitalism: appearances and processes, Jan Toporowski argues that the analysis of financial processes is essential for understanding changes in the financial system. Only these processes give rise to appearances such as the statistical data that are the basis of most studies of financialization. Those processes are fundamentally determined by the structure of the financial system. Following Minsky, Toporowski focuses on corporate finance which, through its effect on business investment, influences the dynamics of the capitalist system. As financial structures change, this gives rise to particular phases of capitalist development. The paper thus builds on Minsky's historical institutional analysis, but offers a more systematic analysis. It offers a periodization of capitalism through mercantile capitalism, classic, bank-based capitalism, finance capital, state finance capitalism, to pension fund capitalism and capital market inflation. It shows how each period ends with financial difficulties that are overcome with financial innovation leading to a new financial structure with corresponding changes in financial processes. Specifically, the paper argues that the phase of capital market inflation, inaugurated by funded pension schemes in the last decades of the twentieth century, has come to an end in the illiquidity of capital markets that lies behind the 2008 financial crisis. The paper suggests that the measures of "unconventional monetary policy", or "Quantitative Easing", mark a new period of state finance capital with a return to the state support of a structurally illiquid capital market that already had prevailed in Europe and North America from the 1930s to the 1960s. The discipline of International Political Economy-IPE has been flirting with evolutionary approaches for the past decade or so. So far, attempts to develop a take on evolutionary theory have proceeded in a rather unstructured way: They range from potential applications of Darwinian theory of selection to more recent efforts to draw on ecological approaches and complexity theory when analysing crises and transformations. There has also been a renewed interest in institutionalist approaches and heterodox tradition, but this too, has been a fragmented process. Ronen Palan's article An Evolutionary Approach to International Political Economy: The Case of Corporate Tax Avoidance aims to offer a pathway to a more systemic framework of evolutionary political economy, in order to rethink the changes in the regulation on the contemporary system of states. Palan develops his approach by distinguishing between a tradition of political economy based on action of discreet entities (this reflects the roots of IPE in neoclassical economics) and a tradition of thought centred around a concept of transaction (taking root in original institutional economics). This framework
    Date: 2020–08

This nep-isf issue is ©2020 by Mohamed Mohamed Tolba Said. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.