Journal of Iran's Economic Essays; an Islamic approach
Year:2011 | Volume:7 | Issue:14|Papers Count:7

This paper by modeling the behavior of economic agents in an Islamic economy and develop a general equilibrium model investigates the capital market equilibrium in an Islamic Economy. Accordingly, have tried to determine the capital market regulator variable, by determine the affecting factors on supply and demand of capital in an economy without interest. According to result, in compared with an economy with interest, that determined exogenous interest rates in the money market is regulator for capital market, variable profit sharing ratio of families in the productive partnership is earned as a capital market endogenous regulator variable in an economy without interest. Also in this article, capital market equilibrium point, maximum production point of producers is obtained, which means more investment in an economy interest-free to the economy is with interest.

This research aims to comprehensive recognition and study on Islamic banking, to assign bank profit and its main factors. It is done by means of Interpretive Structural Modeling (ISM) in order to propose a systemic analysis which is intended to be complete and adopted to reality. The results of this research pose that there are some important economic factors in practical pattern of Islamic banking. The mentioned factors affect profit of deposits, they may interact with each other, then they get reinforced or weakened while affecting the profit.

Main target of this article is investigating the causality, long-run and short-run relationships between economic crimes, income inequality, poverty and economic development for Iranian economy in 1983-2006 period. The results of Engel-Granger, Johansen-Juselius, and Pesaran, et al. (2001) cointegration tests and also Toda-Yamamoto causality test shows that:1. There is no long-run relationships between poverty, development, income inequality and economic crimes.2. Results of Toda-Yamamoto causality test shows a bilateral causality between poverty and economic crimes. Also, there is no causality between income inequality and economic crimes.The article recommendation is to faster the economic growth, and adapting pro-poor policies for decreasing economic crimes.

The main purpose of the current paper is to introduce a model to rate credit risk in developing countries. Since there is no comprehensive theory for evaluation of country credit risk and no complete transparency on the process of rating credit risk by involved institutions then the first aim of the research is to find variables which have most impact on country risk. To gain this purpose, twenty eight financial and economical variables having most impact on rating country risk, based on relevant theories and previous researches, will be selected. Then by applying "Independent Component Analysis (ICA)" we could find nine variables out of twenty eight ones that have most influence on rating country risk between 2002-2006. Results shows that ratio of gross fixed investment to the GDP and percentage of total external debt to the export have positive and negative effect on countries rating. Finally estimation of the model shows this model has the ability to justify 96% of the variance in country credit rating (based on the results provided by Fitch and S&P institutes).

Lack of data, income or solely precautionary considerations have caused people act differently in their life cycle rather than what is expected of them. These differences are mainly related to educational levels, production capacity and their differential pension conditions. The assumption is that people have planned for their old age through different forms of savings at earlier stages of life. Since this may not happen, the aim of social security programs is to solve retirees problem that cannot compensate their income deficit. This paper analyses and simulates Iran’s Pension System by using an overlapping generations model. Thus, we study the effects of transition from the Pay-As-You-Go Pension to the Fully Funded Pension System on capital accumulation, income distribution and poverty. Simulation results show that in addition to higher levels of lifetime utility, The Fully Funded Pension System compared to¬ Pay-as-you-go provides a higher physical capital accumulation for the economy. The transition to Fully Funded System creates two different and opposite effects on poor people. On one hand, poor people economic conditions deteriorate and on the other hand, since they receive returns on their savings, they have an opportunity to be placed in a better situation, because the Fully Funded System enable them to have an access to financial institutions.

The present essay deals with-among different types of distribution - "the distribution of product among production factors" and suggests two important ideas:First, it is not possible to claim with certainty that in a perfect competitive market, final output of a factor shows its added value and participation rate in production. It is true if some presuppositions being considered i.e.; not only getting assured that production function is homogenous but also not a specific rate of factors influences the added value. Accepting a fixed output, a product is earned from the added value of all factors, but separating the added value of each factor is not possible by final output.Second, in Muslim scholar's point of view, justice necessitates that the owners of production factors demand their share to the extend they participate in the production of a product, the role they play in it and the rate of added value they create. It can't be claimed that their added value is equal with their final output.

Markowitz portfolio model still is the dominant approach in the investment profession and scientific approaches. Contrary to the growing use of portfolios and in spite of the rich literature on the subject, there are some problems and unanswered questions. How to select the stocks of a portfolio is a matter of controversy; besides, the approach to optimize the selected potfolio is a sub-group of this controversy. The aim of this work is to be a useful instrument for helping finance practitioners and researchers with the portfolio selection problem. While investigating major methods ever used in optimization, classics and heuristics, a hybridized algorithm, consisting of the combination of two heuristic algorithms, is applied to the portfolio selection problem in this paper. Portfolios are selected and optimized in Tehran stock exchange for the stocks of top 35 companies out of top 50 companies. The results indicate that the hybridized algorithm is adaptable to the portfolio selection problem, and in contrast to optimization via genetic algorithm, the hybridized algorithm holds a better convergence speed and owns a more reasonable risk-return performance. The research findings also show that in a comparison between the hybrid-based constructed portfolios, although the convergence speed and degree of diversification for the monthly selected portfolio outperforms the other one, the annual selected portfolio holds a better performance from risk-return point of view.