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Islamic Economics Project


How Did Islam Abolish Slavery?

It is to be understood that 15 centuries ago, the institution of slavery was common in Arabs and when Islam spread, Islam took measures to get rid of the institution of slavery in a gradual process. Quran is very clear on freeing slaves in the later revealed verses. In verse 12 and 13 of Chapter Balad, Allah says: “And what can make you know what is [breaking through] the difficult pass? It is the freeing of a slave.”

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Limitations of Mainstream Consumer Theory in Economics

Recent evidence in behavioral finance and consumer psychology points to the fact that consumer information processing capabilities are limited and prone to error. Alias paradox and Ellsberg paradox are good examples of this phenomenon. Furthermore, ‘Ultimatum Game’ reflects the fact that people tend to look at their choice outcomes relatively. Prisoner’s Dilemma highlights the fact that choices by each player in a self-centric way are not necessarily going to be best for them either individually or collectively.

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Potential of Islamic Finance to Lead New Financial Architecture

Islamic Banking

The two most important problems identified in a post-financial crisis look back are perverse incentives and de-linking of financial sector growth and activities with the real sector of the economy. Islamic finance principles by basing all financial products with real assets fill the gap and this feature alone is a very important risk management tool inbuilt into the system.

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Does Science Pose Challenge to Islamic Worldview

Science does nothing more than substantiating that the design, variety and balance in universe is more ‘complex, intricate and detailed’ than previously thought of before scientific advancements. In light of the scientific body of knowledge developed thus far, the assertion of chance argument for the origin and dynamic organization of this universe becomes all the more weak.

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Islamic Economics and Behavioral Studies of Religious Agents

Studies in primary-data based religious choices or economic choices by religious persons can explain differences in social and economic choices between religious and non-religious groups, but measuring both the religiosity and its causal effect on behavior is difficult to establish. Furthermore, it is only a Godly endeavor to truly judge about religiosity.

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Difference between Islamic Economics and Islamic Law

Even though the principles like prohibition of Riba and Zakat are binding as rules, they also have an important economic rationale and function in economic matters of an Islamic society. Hence, the mandate of Islamic economics will be to explain their economic merit using experimental and observational data and by applying statistical and other suited techniques to establish certain analytical hypothesis.

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