Handbook of Analytical Studies in Islamic Finance and Economics

Zamir Iqbal, Tarik Akin, Nabil El Maghrebi, Abbas Mirakhor, Zamir Iqbal, Tarik Akin, Nabil El Maghrebi, Abbas Mirakhor, Zamir Iqbal, Tarik Akin, Nabil Maghrebi, Abbas Mirakhor

• Publisher: De Gruyter Oldenbourg
• Year: 2020
• eBook ISBN: 9783110587920
• Edition: 1
• Topic: Business
• Subtopic: Finance
• Index: Business

This handbook offers a unique and original collection of analytical studies in Islamic economics and finance, and constitutes a humble addition to the literature on new economic thinking and global finance. The growing risks stemming from higher debt, slower growth, and limited room for policy maneuver raise concerns about the ability and propensity of modern economies to find effective solutions to chronic problems. It is important to understand the structural roots of inherent imbalance, persistence-in-error patterns, policy and governance failures, as well as moral and ethical failures.

Admittedly, finance and economics have their own failures, with abstract theory bearing little relation with the real economy, uncertainties and vicissitudes of economic life. Economic research has certainly become more empirical despite, or perhaps because of, the lack of guidance from theory. The analytics of Islamic economics and finance may not differ from standard frameworks, methods, and techniques used in conventional economics, but may offer new perspectives on the making of financial crises, nature of credit cycles, roots of financial system instability, and determinants of income disparities.

The focus is placed on the logical coherence of Islamic economics and finance, properties of Islamic capital markets, workings of Islamic banking, pricing of Islamic financial instruments, and limits of debt financing, fiscal stimulus and conventional monetary policies, inter alia. Readers with investment, regulatory, and academic interests will find the body of analytical evidence to span many areas of economic inquiry, refuting thereby the false argument that given its religious tenets, Islamic economics is intrinsically narrative, descriptive and not amenable to testable implications. Thus, the handbook may contribute toward a redefinition of a dismal science in search for an elusive balance between rationality, ethics and morality, and toward a remodeling of economies based on risk sharing and prosperity for all humanity

Table of contents

• Preface
• Contents
• Part I: Logical Coherence and Consilience in Islamic Economics
• Chapter 1: On the Logical Character and Coherence of Islamic Economics
• Chapter 2: Consilience as Islamic Methodology of Tawhid: The General Socio-Scientific Framework
• Chapter 3: Economics for a Better Future
• Chapter 4: Game-Theoretic Investigation into Economic Behavior
• Part II: Interest Rates, Economic Uncertainty and Macroeconomic Policies
• Chapter 5: Interest Rates, Unconventional Monetary Policies and Market Volatility Expectations
• Chapter 6: Beyond DSGE: An Accounting System Dynamics Modelling Approach
• Chapter 7: Equity-based Macroeconomic Policies: An Alternative Solution to Economic Stability and Development
• Part III: Microeconomic Modelling of Asset Prices and Equity Portfolio Analysis
• Chapter 8: Statistical Microeconomic Modelling of Asset Prices: Some Perspectives from Islamic Finance and Economics
• Chapter 9: Monitoring Strategy in Profit-Loss Sharing Arrangements: Cost or Investment?
• Chapter 10: The Effect of Market Regimes on the Performance of Market Capitalization- Weighted and Smart-Beta Shariah-Compliant Equity Portfolios
• Chapter 11: Analysis of the Risk of Failure in Sukuk Portfolios
• Chapter 12: A Portfolio of Islamic Private and Social Financial Instruments
• Part IV: Risk-sharing Finance and Financial Consumer Protection
• Chapter 13: Do Islamic Banks Contribute to Risk Sharing?
• Chapter 14: Catalyst for SMEs’ Access to Finance in the OIC: Renting Money or Renting Assets?
• Chapter 15: Fame as an Operational Proxy of “Taqwa”: Controlling Asymmetric Information or Gharar in a Game-theoretic Design of Equity-Crowdfunding?
• Chapter 16: Financial Consumer Protection: Empirical Evidence from Dual Banking Systems
• Part V: Financial Institutions and Financial System Stability
• Chapter 17: Analytical Assessment of Liquidity Risk Management in Islamic Banks
• Chapter 18: Antifragility of Risk-Sharing Finance: A Quantitative Analysis
• Chapter 19: Modeling Bank Branch Efficiency using Data Envelopment Analysis
• Chapter 20: An Empirical Analysis of Income Structure and Profitability of Islamic and Conventional Banks in South Asia
• Part VI: Risk-Sharing Finance, Income Inequality and Asset-based Redistribution
• Chapter 21: Risk-Sharing Asset-based Redistribution in Public Finance: A Stock- Flow Consistent Analysis
• Chapter 22: Risk-Sharing Finance and Inequality in a Benchmark Agent-Based Model
• Chapter 23: People’s Wellbeing: A Strive to Meet Maqasid al-Shariah
• Part VII: Islamic Finance, Economic Growth and Human Development
• Chapter 24: Is Islamic Banking Good for Growth?
• Chapter 25: An Alternative Model of Economic Stabilization and Growth for Developing Countries
• Chapter 26: Are Finance and Human Development Important for Economic Growth? International Evidence from Dynamic GMM Approach
• Chapter 27: Resource Curse in Muslim Countries
• List of Figures
• List of Tables
• Author Biographies
• Index