Islamic Economics
The Emergence of a New Paradigm
Bibliographic Data
| ID | 9714777 |
|---|---|
| Authors | John R Presley (Loughborough University), John G Sessions (0000-0002-4947-2186, Loughborough University) |
| Year | 1994 |
| Volume | 104 |
| Issue | 424 |
| Pages | 584 |
| Publication date | 1994-05-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.2307/2234633 |
| OpenAlex | W2089882376 |
| Language | EN |
| Citations received | 7 |
| References cited | 5 |
We illustrate the potential impact of the Islamic doctrine on western economic relationships by focusing on the prohibition of interest (riba) in Islamic economics. We show that the alternative method of financier remuneration (i.e. mudarabah profit-and-loss sharing) will, under certain conditions, enhance capital investment on account of its ability to act as an efficient revelation device. By applying ideas developed in the western contract literature, we show that a mudarabah contract between the manager of a project and a syndicate of investors may permit a more efficient revelation of any informational asymmetries between the two
Business · Classical economics · Doctrine · Economics · Investment (military · Islam · Islamic economics · Law and economics · Microeconomics · Neoclassical economics · Political science · Profit sharing · Remuneration · Revelation · Syndicate · Auction Theory and Applications · Finance · Islamic Finance and Banking Studies · Law · Taxation and Compliance Studies
| Citations per year | 0.23 |
|---|---|
| Citation span | 1995 - 2023 (29) |
| Highly cited | No |