nep-isf New Economics Papers
on Islamic Finance
Issue of 2024‒02‒05
two papers chosen by
Ali Polat, Ankara Yıldırım Beyazıt Üniversitesi

  1. Essay on the Philosophy of Islamic Economics By Ahmed Mohammed, Abdullahi
  2. "Factors that influence Personal Financial Management at the Islamic Economics Student Institute Perbanas Jakarta " By Markonah Markonah

  1. By: Ahmed Mohammed, Abdullahi
    Abstract: ABSTRACT The paper explores the principle that in Islamic perspective ethics dominates economics, which unambiguously portray the essential attribute of Islamic economics system. Similarly, Islamic economics repudiates the ground that economics is independent of ethics and the idea of value free economics propagated by Robbins and the neo-classical notion of Homo-economicus (economic man) who only considers his utility function of his selfish interest. But in replacement and discarding economic from ethical economic behavior Anas Zarqa substituted homo economics (economic man) for Homo-Islamicus (economic man with Islamic ethics). The fundamental difference between the two prototypes to Zarqa, is that the consumption behavior of Homo-Islamicus is deeply influenced by a consideration of the penalty or reward in the life after death and he embraced the Islamic ethics in regulating his economic choices and behavior. Similarly, we explore that Islamic economics is closely related Islamic jurisprudence that deals with business laws, providing general framework and premise for economic dealings and its operation in an Islamic society (fiqh mu’amalat). It draws conditions and criterion governing economic and financial relationships in an Islamic economy. We argued that economics also as normative discourse involving ethical consideration and evaluation of human behavior. Hence Economist are in the position to advocate, Condemn, and proper solution to problems within the context of social scenario and ethical point of view. Economist are called upon to prescribe solution to some of the old age economic problem of mankind like poverty, income inequality, and problem unemployment This prescription will be uttered based on the people’s social reality, and that indicates value judgment which is normative.
    Keywords: Epistemology, Islamic Economics, Homo-Economicus, Homo-Islamicus, Ethics, Normative Economics
    JEL: A1 I3 P51 Z12 Z13
    Date: 2023–08–09
  2. By: Markonah Markonah (Faculty of Economics and Business, Perbanas Institute, Jakarta, Indonesia Author-2-Name: Hedwigis Esti Mediteraniai Author-2-Workplace-Name: Faculty of Economics and Business, Perbanas Institute, Jakarta, Indonesia Author-3-Name: Yohanes Ferry Cahaya Author-3-Workplace-Name: Faculty of Economics and Business, Perbanas Institute, Jakarta, Indonesia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: " Objective - Personal financial management is a way of managing finances that is the responsibility of the individual. This study analyzes the effect of financial literacy, financial attitude, and hedonistic lifestyle on personal financial management in Islamic Economics students at Perbanas Institute Jakarta. The benefit of this research is that Islamic Economics Students at the Perbanas Institute, Jakarta, are more careful in managing their personal finances. Methodology – The population in this study was Perbanas Institute Jakarta Islamic Economics students' class of 2018-2021. The sample in this study was obtained from questionnaire data distributed to 100 respondents using the nonprobability sampling method. Sampling used accidental sampling. Findings – Using regression analysis, data were processed with SPSS version 25. The results showed that the hedonistic lifestyle proved to have a positive and significant effect on personal financial management. In contrast, financial literacy and financial attitude had no effect on personal financial management. Adjusted R Square value of 23.2% states that Personal Financial Management is influenced by Financial Literacy, Financial Attitude, and hedonistic lifestyle of 23.2%. Novelty – It is recommended to improve the hedonistic lifestyle in managing their finances and how to allocate time effectively so that Personal Financial Management also increases so that they can save expenses. Type of Paper - Empirical"
    Keywords: Financial Literacy, Financial Attitude, Hedonism Lifestyle, Personal Financial Management.
    JEL: G21 G34 B26
    Date: 2023–12–31

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