JOURNAL OF ISLAMIC ECONOMIC STUDIES
Year:2017 | Volume:9 | Issue:1 (17) |Papers Count:8

The purpose of this paper is to survey of Muslim consumer behavior with respect to a given portfolio. In other words, in this paper, a set of specified assets with returns in certain state be considered as the individual's budget constraint. In this regard, factors affecting the portfolio selection by the individual in Islamic economics will be discussed. Also the subject of consumption in Islamic Economics is analyzed and finally the principal model of paper will be provided. For this purpose a Muslim, utility of consumption and the utility of Infaq in the current period and future (future periods discounted with the rate of time preference) and maximize with respect of his portfolio. Finally will be specified that the value of Asset in certain state with marginal utility of Infaq and consumption in current time have inverse relationship and marginal utility of Infaq and consumption in future time, time preference of investor– consumer and the probability of a given situation related to a specific asset have a direct relationship. It also use of this model can be derived the function of consumption and Infaq.

Equitable distribution of income and economic growth are challenges for policy-makers. Therefore, it is important to investigate the influencing factors of it. Given that financial development is an important factor affecting on income inequality, in this study, the effect of financial development on the Gini coefficient as income inequality index is examined with using panel data methods during the period of 1994-2011 in selected Islamic countries.Model estimation results show that the financial development in both the banking sector and stock has an Opposite effect on income inequality. Inverted U-shaped relationship by Greenwood and Jovanovich that shows non-linear relationship between financial sector development and income inequality is not confirmed in both the banking and the stock market. But hypothesis by the linear relationship between financial development and income inequality was confirmed. Inflation has a direct effect on income inequality, which means that inflation has an increase in income inequality in the studied countries.

Some Islamic economists often in facing with the utility theory of neoclassical economics insert Islamic components such as Infaq, Waqf, khoums, Zakat and so on in the original utility function. It seems that this incomplete, superficial and eclectic innovation of Islamic economists is due to methodological weaknesses of the Islamic economics. These Islamic economists often explain and justify it philosophically by hedonistic interpretation of Islamic morality and without paying attention to hidden axioms and moral values of two Dimensional utility theory. In this way it seems problematic. In this paper we are going to explain the problems and contradictions of two dimensional utility theory from the Islamic point of view. In review of such the contradictions it will be tried to introduce "Islamic duty- based morality" as moral foundation of Islamic economics. According to Islamic teachings it seems that this moral theory as a behavioural principle of a Muslim is better than two- dimensional utility theory.

In the past few decades, Capitalist economic system has witnessed different financial crises the most important of which is the 2008 financial crisis. The crisis had different causes that the main causes are innovations and financial assets without actual backing (real underlying asset) and their developing by financial institutions. Namely, financial institutions, especially banks, developed their transactions by investing in financial assets with no real backing.Banks and similar financial institutions for other reasons, including the lack of adequate monitoring system, Extensive credits with no relevant standards, fiat money creation, log in risky activities and increased leverage were effective in developing crisis.In this study the role of conventional banking in the development of crisis and on the contrary, the characteristics of Islamic banking in the immunity of crisis is explained.Islamic financing system is a financial system which is based on real assets, In other words, on real economy. There has been considerable growth in recent years, in Islamic banking which represents a very good alternative to the conventional techniques in the financial system.Islamic banking through a close relationship with the real economy, financial transparency, supervision and control, distribution of risks and minimal influence of shocks, lending standards, lack of investment in subprime assets, requires detailed risk assessment activities would prevent the recurrence of similar financial crises.

Rationality, based on economic system of capitalism to explain phenomenon is based on self-interest. One important phenomenon from the perspective of the new classical school of macroeconomic, Kydlnd and Prescott (1977), the winners of the 2004 Nobel Prize in economics is, time inconsistency. Time inconsistency, is a condition that will cause a decision (by households, firms, or scheduler), which is hold at time t, to run for t+1, will run at t+1 against the decision holds at time t. This phenomenon increases the deviation from optimal macroeconomic policy and the ultimate goals.In this paper, using descriptive analysis and designing two sector closed economy of production and consumption, we prove that, there is no real equilibrium point in economy with the existence of phenomenon of time inconsistency. Even, flexible price mechanism in markets and capitalism conventional approaches such as delegation, rule and reputation are not applicable. The proposed approach of the paper is the human economy in Islamic view that would avoid of time inconsistency.

The Regulatory Economics concept has been closely associated with the concept of competition and this relationship has been highlighted during recent decades. Today, Regulation and competition have inseparable relationship with each other in the economy, so that sometimes the "regulation for competition" methods are used in the market to indicate that the regulator is required to compete in the current economic environment.The main issue of this paper is the comparative analysis of the regulatory economics concept between Islamic and conventional economics with regard to competition law. The nature of competition law is considered as a theoretical framework.This study was conducted with the comparative-analytical approach. The findings show that conventional economics schools such as the classical and Chicago schools only consider the efficiency of competition law while Islamic scholars believe other factors moreover the efficiency. In fact, the study of Hesbe as a regulatory body indicate that this institution is responsible for economic and non-economic objectives. Therefore, the regulatory nature has a significant difference in Islamic economics and other schools.

One of the necessities of social life is transaction between people, and one of the certain rule of these transaction is justice in trade-offs. On the other hand one of the components of this kind of justice is "Ifa-e-Kai" (completing the measure and scale). The importance of observing this rule is so that the noncompliance was the bane of the people of the prophet shuaib (pbuh). "Ifa-e- Kai" is not limited to bushel and weighted goods but it also include any kind of exchange of goods and services. So with the extension of "Ifa-e-Kai" concept, the extent of inclusion of this economic principle become broader and its realization become more important.This paper is based on library research for gathering the information and on descriptive analysis for explaining the benefit of "Ifa-e-Kai". In this paper we use the related verse of Qurans and the transition of prophet (pbuh) through "Almizan" (a book of interpretation of Quran by Allame Tabatabaei) and some socio-economics scientists. The following result have been achieved as advantage of "Ifa-e-Kai" in transaction: greater focus on selfmanagement and self-evaluation, raise of trust, lower price level and greater economic growth.

In the history of Islam, Until the last century, Shiah and Sunni scholars haven’t distinguished between consumption and production loans and riba in Islam absolutely has been forbidden. With the development of capitalism and its influence in Muslim countries, many businessmen, industrialists and bankers were faced with the problem of usury. To solve this problem, a group of theologists proposal interest-free banking model and others tried to present a new interpretation of riba with distinguishing between consumption and production loans. Based on this theory, these scholars believed conventional banking don’t have any Shariah challenge, because loans that provided by conventional banks are production loans and receiving any return on these loans is not prohibited.This paper reviews the historical background of the prohibition of riba and the reasons for it, then with reviewing and analyzing ten reasons about the prohibition of riba, we understand there is no complete reason for differentiating riba in consumption and production loans and riba absolutely is forbidden from the point of view of Islam.