Overview
- Uses modern economic theory to shed light on the evolution of Islamic financial institutions and their effect on the contemporary economic performance of Muslim countries and diasporas
- Includes an introduction to the history of Islamic banking and provides a legal framework for it
- Introduces the reader to the game theory and modern mechanism design theory
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Table of contents (16 chapters)
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Front Matter
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Islamic Finance: Rationale, History, Instruments and the Legal Framework
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Front Matter
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The Law of Unexpected Consequences
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Front Matter
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Game Theory and Mechanism Design
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Front Matter
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Mechanism Design Applications to Islamic Finance
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Front Matter
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Keywords
About this book
This book provides researchers and students with an understanding of the basic legal tenets of the Islamic finance industry, studying the real economic effects of those tenets using the tools of the modern economic theory. Split into four parts, the book begins with an introduction to the history and a legal framework for Islamic banking, covering typical Islamic financial products such as Sukuk and Takaful and examining the structure of Islamic financial institutions. It then analyzes and discusses the Miller-Modigliani Theorem, which is of direct relevance to Islamic banks which are prohibited to charge interest and often have to rely of profit-loss sharing agreements. Part III of the book introduces the reader to modern mechanism design theory, paying particular attention to optimal contracting under hidden action and hidden information, and final part of the book applies the tools of economic theory to understand performance of Islamic financial institutions such as Islamic banks and Takaful operators.
Islamic Finance in Light of Modern Economic Theory brings together all the necessary technical tools for analyzing the economic effects of Islamic frameworks and can be used as an advanced textbook for graduate students who wish to specialize in the area, as a reference for researchers and as a tool to help economists improve the design of Islamic financial institutions.
Authors and Affiliations
About the authors
Suren Basov obtained a PhD in Economics in 2001 from Boston University. He held positions at University of Melbourne and La Trobe University and is currently a visiting scholar at Deakin University. Over the course of his career he has published extensively in the field of economic theory and Islamic Finance in leading international journals.
M. Ishaq Bhatti is the founding Director of Islamic Banking and Finance Program at Latrobe University. Previously, he worked at Monash, Islamic University, UAE, Kuwait and Saudi Arabia. He is an award-winning teacher and has authored more than 100 articles and five books. He consults for IDB, AusTrade, Vict. Dept of Education, Iraqi, Turkish & Pakistani central Banks and is an Advisory Board member of the National Zakat Foundation (NZF) of Australia. He is also involved in 'Zakat@ICV' and NILS-No interest loan Qard Hassan, and is editor of an Islamic Business Series published by Routledge.
Bibliographic Information
Book Title: Islamic Finance in the Light of Modern Economic Theory
Authors: Suren Basov, M. Ishaq Bhatti
DOI: https://doi.org/10.1057/978-1-137-28662-8
Publisher: Palgrave Macmillan London
eBook Packages: Economics and Finance, Economics and Finance (R0)
Copyright Information: The Editor(s) (if applicable) and The Author(s) 2016
Hardcover ISBN: 978-1-137-28661-1Published: 16 December 2016
eBook ISBN: 978-1-137-28662-8Published: 01 December 2016
Edition Number: 1
Number of Pages: XIII, 173
Number of Illustrations: 2 b/w illustrations
Topics: Economic Theory/Quantitative Economics/Mathematical Methods, International Economics, Cultural Economics, Heterodox Economics