Corrigendum to “Optimal incentives for takaful (Islamic insurance) operators” [Journal of Economic Behavior and Organization 109C (2015) 135–144]

2021 ◽  
Author(s):  
Hayat Khan
Keyword(s):  
Economic Behavior ◽  
Islamic Insurance ◽  
Optimal Incentives

scholarly journals A Nontechnical Guide on Optimal Incentives for Islamic Insurance Operators

2019 ◽  
Vol 12 (3) ◽  
pp. 127
Author(s):  
Hayat Khan
Keyword(s):  
Business Models ◽  
Analytical Framework ◽  
Gift Exchange ◽  
Optimal Model ◽  
Best Interest ◽  
Surplus Sharing ◽  
Optimal Contracting ◽  
Islamic Insurance ◽  
Adverse Selection Problem ◽  
Optimal Incentives

The takaful industry is searching for an optimal model for Islamic insurance operation, which has turned out to be a challenging task. This paper translates the abstract scientific knowledge accumulated in the optimal contracting literature into a simple, nontechnical, analytical framework to analyze alternative business models which could be used by regulators to align the best interest of shareholders and policyholders in the takaful industry. This paper shows that the wakalah–surplus-sharing hybrid serves as the optimal structure for takaful operation; in the presence of Akerlof’s (1982) gift-exchange, the wakalah fee reduces the adverse selection problem; and the wakalah fee could be used to protect infant takaful operators.

A Political Economy Model of a Research University

2009 ◽  
pp. 132-143
Author(s):  
K. Sonin ◽  
I. Khovanskaya
Keyword(s):  
Organizational Structure ◽  
Information Structure ◽  
Research University ◽  
Hiring Decisions ◽  
Voting Rules ◽  
Economy Model ◽  
Trade Offs ◽  
Political Economic ◽  
Optimal Incentives

Hiring decisions are typically made by committees members of which have different capacity to estimate the quality of candidates. Organizational structure and voting rules in the committees determine the incentives and strategies of applicants; thus, construction of a modern university requires a political structure that provides committee members and applicants with optimal incentives. The existing political-economic model of informative voting typically lacks any degree of variance in the organizational structure, while political-economic models of organization typically assume a parsimonious information structure. In this paper, we propose a simple framework to analyze trade-offs in optimal subdivision of universities into departments and subdepartments, and allocation of political power.

On the Causes of Socio-Economic Inequality Reproduction: What Does Resources Approach Show?

2014 ◽  
pp. 144-160
Author(s):  
E. Avraamova ◽  
T. Maleva
Keyword(s):  
Social Dynamics ◽  
Economic Inequality ◽  
Poverty Rate ◽  
Economic Behavior ◽  
Sample Survey ◽  
Family Welfare ◽  
Rate Reduction ◽  
Rational Models ◽  
Information Database ◽  
Vertical Mobility

This paper presents an attempt at answering the question of why the scope of socio-economic inequality stays the same in Russia despite the poverty rate reduction. The authors are looking for the causes of this phenomenon in the domain of social dynamics, i.e., in the nature of current vertical mobility mechanisms. To study these mechanisms the authors use resources approach. The information database of the research is the representative sample survey carried by the Institute for Social Analysis and Forecasting at RANEPA in 2013. The majority of the respondents have, in fact, vague idea of general parameters of the economic development of the country and of their personal prospects to adapt to possible changes. This state of things hinders the development of rational models of socio-economic behavior directed towards the growth of personal and family welfare and productive in terms of national economy development - these, eventually, would advance the reduction of socio-economic inequality. Various groups of population are predominantly oriented towards converting social capital viewed not in terms of trust and solidarity, but in terms of ties or connections and of personal loyalty.

The Economy of Wellbeing in Beji: Pesantren and Entrepreneurship in Village Community

2019 ◽  
Vol 4 (1) ◽  
pp. 94-102
Author(s):  
Syamsul Hadi
Keyword(s):  
Religious Education ◽  
Common Good ◽  
Economic Benefits ◽  
Economic Behavior ◽  
Mutual Help ◽  
Depth Interview ◽  
Local Residents ◽  
Socio Economic Impact ◽  
Village Society ◽  
The Village

This article aims to explain the field findings related to the socio-economic conditions of the community in Beji village. The village was known as the base of the santri and the socio-economic impacts that provide value to the life of the community around the pesantren. The research used a qualitative method with a constructivism approach. Excavation of data through in-depth interview techniques and field observations and enriched with document studies. Informants interviewed were determined through the snowballing techniques. The result of the research shows that the existence of Manbail Futuh pesantren in the middle of village society not only serves to serve religious education (Islam) but with the number of santri coming from various regions, so the existence of pesantren also gives a socio-economic impact for the surrounding community. Against the community the economic benefits provided by pesantren is not active but passive. This is because the pesantren is limited to providing opportunities for local residents in the pesantren location to accommodate 833 students of mukim and has an active student of 2,469 people without attracting any pennies for "retribution". Sociologically, the socio-economic relation between pesantren and the local people who work as a sword gives birth to the pattern of the economic behavior of mashlahat. It can be said that the economic action played by pesantren is a substantive economy based on Islamic moral values, namely the principles of ta'awun (mutual help) and the principle of maslahat (the common good).

General Takaful claims: An experience of Takaful operator in Malaysia

2017 ◽  
Vol 5 (4) ◽  
pp. 18
Author(s):  
Amirul Afif Muhamat ◽  
Mohamad Nizam Jaafar ◽  
Sharifah Faigah Syed Alwi
Keyword(s):  
Life Insurance ◽  
Islamic Finance ◽  
Rigorous Analysis ◽  
Finance Industry ◽  
General Insurance ◽  
Bright Side ◽  
Main Components ◽  
Islamic Insurance ◽  
Gathering Data ◽  
Observation Period

Takaful is interchangeably referred as Islamic insurance. In Malaysia, the takaful sector is part of the main components for Islamic finance industry. The business can be divided into two: general and family takaful. To ease understanding on this niche sector; general takaful is comparable to general insurance while family takaful is akin to life insurance with special reference needs to be given on the requirement of the business to adhere to the Islamic precepts. The main business in general takaful is motor takaful and this line of business is faced with high takaful claims. This study appraised the factors which affect the general takaful claims based on the experience of one takaful operator in Malaysia (the name of takaful operator is not disclosed due to confidentiality). The factors are: number of claims; fraud; and coverage for protection. The limitation of this study is that the observation period is only 10 years which limits rigorous analysis to be done. Nevertheless, previous studies in this area depict the same limitation – constraint in gathering data that has long observation period. On the bright side, the data in this study is still capable to produce meaningful results to be referred with regards to this issue – general takaful claims.

Sustainability and adaptability of regional development in the conditions of digitalization

2020 ◽  
Vol 19 (9) ◽  
pp. 1550-1613
Author(s):  
O.E. Akimova ◽  
S.K. Volkov ◽  
E.A. Gladkaya ◽  
I.M. Kuzlaeva
Keyword(s):  
Sustainable Development ◽  
Regional Development ◽  
Economic Behavior ◽  
Regional Inequality ◽  
Environmental Damage ◽  
Economic Potential ◽  
Human Welfare ◽  
Long Time ◽  
The Stability ◽  
Smart Technologies

Subject. The article discusses the sustainability of regional economy development, its definition, and the substance of sustainable development. Objectives. We aim at performing a comprehensive analysis of indicators of sustainability and adaptability of regional development in the context of digitalization, formulating a strategy for economic behavior that takes into account the multidimensional nature of regional inequality and is focused on boosting the economic potential of regions. Methods. The study draws on dialectic and systems approaches, general scientific methods of retrospective, situational, economic and statistical, and comparative analysis. Results. The sustainability of the region focuses on improving the human welfare over long time horizon. This happens in three areas, i.e. maximizing the efficiency of resource use; ensuring justice and democracy; minimizing resource consumption and environmental damage. The stability of the region can be assessed by using one parameter, or by combining the parameters in accordance with the type of region and expected results. Conclusions. The adaptation of a region to changing conditions depends on its type (‘adapted’, ‘adaptive’, and ‘non-adapted’). Regional inequality has two main components: difference in economic potential and social satisfaction of residents. Another component, affecting the stability and adaptability of regions, is the level of their digitalization. However, some regions have only formally embarked on the path of digitalization. Moreover, a focus on smart technologies, solutions and digitalization often leads to ignoring the goals of sustainable development. Smart technologies should be aimed at ensuring sustainability within the framework of the smart sustainable city concept.

A comparative analysis of the anthropogenic impact and user-pays principle availability in the model areas of the Russian Federation

2020 ◽  
Vol 18 (9) ◽  
pp. 1787-1798
Author(s):  
S.N. Ayusheeva
Keyword(s):  
Environmental Management ◽  
Comparative Analysis ◽  
Russian Federation ◽  
Natural Environment ◽  
Anthropogenic Impact ◽  
Negative Impact ◽  
Economic Behavior ◽  
Environmental Investment ◽  
The Russian Federation ◽  
Comparative Systems

Subject. This article assesses the effectiveness of the existing system of environmental management based on the user-pays principle in terms of reducing the negative impact on the environment. Objectives. The article aims to conduct a comparative analysis of the anthropogenic impact on natural environment components and deficiency payments for pollution in the model areas of the Russian Federation. Methods. For the study, I used the methods of computational, comparative, systems, and structural analyses. Results. Based on the ecological rating of the Russian Federation subjects, the article defines model areas, assesses the degree of anthropogenic impact on the basis of pollution relative rates, and describes the particularities of environmental investment in the selected areas. Conclusions. The system of payments for pollution does not affect the economic behavior of economic entities.

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