A Dynamic Investment Model with Profit-Sharing in an Interest-Free Economy

1991 ◽  
Vol 8 (1) ◽  
pp. 109-127
Author(s):  
Zaidi Sattar
Keyword(s):  
Optimal Investment ◽  
Integrated Approach ◽  
Building Blocks ◽  
Profit Sharing ◽  
Comparative Statics ◽  
Investment Model ◽  
Financial Contracts ◽  
Endogenous Variables ◽  
Rate Of Profit ◽  
Component Models

The present paper is a contribution to the building blocks of an investmentmodel within the framework of an integrated macroeconomic model of anIslamic economy. Investment behavior in the model is guided by an Islamicethicalvalue system and profit-sharing financial contracts. The typical firm’sinvestment decision is believed to emerge from a dynamic inter-temporalmaximization exercise within an infinite time horizon. The method of Calculusof Variations is applied to arrive at the optimal investment and employmentcriteria for the firm. The result is then incorporated into a macroeconomicmodel to study the behavior of key endogenous variables like national incomeand the rate of profit-share. Comparative statics exercised within a generalequilibrium framework reveal the potency of monetary policy but the neutralityof fiscal policy with respect to output and employment.IntroductionThe past decade has witnessed a tremendous outpouring of interest aswell as effort in the formalization of economic models based on profit-sharingfinancial arrangements as an Islamic alternative to the conventional interestbasedeconomic system. Several macroeconomic models for interest-freeeconomies have been proposed (Anwar 1987; Habibi 1987; Metwally 1981& 1983). The rigor of an integrated approach to such macroeconomic modelhgdepends on the rigor of the component models, namely, the consumption,investment, monetary, and fiscal relationships. Economists have writtenextensively on different aspects of consumer behavior in Islamic societies.Kahf (1978) and Khan (1984), among others, have contributed to the conceptualand analytical formulation of the consumption function under ...

An optimal investment model with Markov-driven volatilities

2011 ◽  
Vol 14 (9) ◽  
pp. 1651-1661
Author(s):  
Shangzhen Luo ◽  
Xudong Zeng
Keyword(s):  
Optimal Investment ◽  
Investment Model

A Stochastic Investment Model for Actuarial Use

1984 ◽  
Vol 39 ◽  
pp. 341-403 ◽  
Author(s):  
A. D. Wilkie
Keyword(s):  
Pension Fund ◽  
Working Party ◽  
Investment Model ◽  
Financial Contracts

1.1. The purpose of this paper is to present to the actuarial profession a stochastic investment model which can be used for simulations of “possible futures” extending for many years ahead. The ideas were first developed for the Maturity Guarantees Working Party (MGWP) whose report was published in 1980. The ideas were further developed in my own paper “Indexing Long Term Financial Contracts” (1981). However, these two papers restricted themselves to a consideration of ordinary shares and of inflation respectively, whereas in this paper I shall present what seems to me to be the minimum model that might be used to describe the total investments of a life office or pension fund.

scholarly journals Digitally Enabled Health Service for the Integrated Management of Hypertension: A Participatory User-Centred Design Process

2021 ◽  
Vol 18 (23) ◽  
pp. 12442
Author(s):  
Vincenzo De De Luca ◽  
Vanja Lazic ◽  
Strahil Birov ◽  
Klaus Piesche ◽  
Ozan Beyhan ◽  
...  
Keyword(s):  
Healthcare Professionals ◽  
Healthy Lifestyle ◽  
Integrated Management ◽  
Integrated Approach ◽  
Building Blocks ◽  
Process Models ◽  
Functional Requirements ◽  
Health Care Organisation ◽  
Care Organisation ◽  
It Systems

This article describes a user-centred approach taken by a group of five procurers to set specifications for the procurement of value-based research and development services for IT-supported integrated hypertension management. The approach considered the unmet needs of patients and health systems of the involved regions. The procurers established a framework for requirements and a solution design consisting of nine building blocks, divided into three domains: service delivery, devices and integration, and health care organisation. The approach included the development of questionnaires, capturing patients’ and professionals’ views on possible system functionalities, and a template collecting information about the organisation of healthcare, professionals involved and existing IT systems at the procurers’ premises. A total of 28 patients diagnosed with hypertension and 26 professionals were interviewed. The interviewees identified 98 functional requirements, grouped in the nine building blocks. A total of nine use cases and their corresponding process models were defined by the procurers’ working group. As result, a digitally enabled integrated approach to hypertension has been designed to allow citizens to learn how to prevent the development of hypertension and lead a healthy lifestyle, and to receive comprehensive, individualised treatment in close collaboration with healthcare professionals.

scholarly journals PENGARUH EKUIVALEN RATE BAGI HASIL, TINGKAT SUKU BUNGA DEPOSITO BPR DAN JUMLAH KANTOR BPRS TERHADAP JUMLAH NASABAH DEPOSITO iB MUDHARABAH PADA BPRS DI INDONESIA PERIODE 2016-2018

2019 ◽  
Vol 3 (2) ◽  
pp. 124-139
Author(s):  
Juliana Putri ◽  
Salman Alfarisi
Keyword(s):  
Interest Rates ◽  
Time Series Data ◽  
Predictive Analytics ◽  
Linear Regression Analysis ◽  
Profit Sharing ◽  
Variable Number ◽  
Coefficient Of Determination ◽  
Series Data ◽  
Equivalent Rate ◽  
Rate Of Profit

This study aims to determine the effect of the equivalent rate of profit sharing, interest rates on BPR deposits and the number of BPRS Offices on the number of mudharabah iB deposit customers at BPRS in Indonesia. The research method used is quantitative descriptive research using secondary data in the form of financial reports published by OJK in Sharia Banking Statistics (SPS) and Indonesian Banking Statistics (SPI) with time series data in the period of 2016-2018. The sample in this study all BPRS in Indonesia is 168 BPRS. Analysis of research using multiple linear regression analysis using application or supporting software namely PASW (Predictive Analytics SoftWare) Statistics 18, the results of research, it can be concluded that: 1) Equivalent rate of profit sharing (X1) has a significant negative effect of iB mudharabah deposit customers, 2) Variable interest rates on BPR deposits (X2) do not affect the number of mudharabah iB deposit customers. 3) The variable number of BPRS offices (X3) has a significant positive effect on the number of mudharabah iB deposit customers. 4) The coefficient of determination obtained is 0.586 or 58.6%. which means that 58.6% causes variable variable number of iB mudharabah (Y) deposit customers can be influenced by the equivalent rate of profit sharing, the level of BPR deposit rates and the number of BPRS offices, while the remaining 41.4% is influenced by other factors not included in the study.

scholarly journals Macroeconomic and distributional effects of demographic change in an open economy—the case of Belgium

2020 ◽  
Vol 86 (1) ◽  
pp. 87-124
Author(s):  
Willem Devriendt ◽  
Freddy Heylen
Keyword(s):  
Open Economy ◽  
Demographic Change ◽  
Capital Investment ◽  
Physical Capital ◽  
Investment Model ◽  
Overlapping Generations Model ◽  
Endogenous Variables ◽  
Working Age ◽  
Negative Effect ◽  
Per Capita

AbstractWe construct and parameterize an overlapping generations model for an open economy with individuals who differ in innate ability. Key endogenous variables are hours worked, investment in human and physical capital, and per capita growth. The model replicates important data in Belgium since 1960 remarkably well. Simulating it, we observe that behavioral adjustments by households and firms contribute to reverse the negative arithmetical effect of future demographic change on per capita growth. Individuals work and study more. However, with unchanged policies, there remains a net negative effect on annual per capita growth of almost 0.3%-points on average in the next 25 years. This is mainly due to adverse consequences of reduced fertility and a declining working-age population on (the return to) physical capital investment. Model projections also point to rising income inequality induced by demographic change. Differences in the capacity of individuals to respond to increasing life expectancy by investing in education, and by saving, are key.

scholarly journals Penerapan Model Profit-Loss Sharing untuk Investasi Modal Kecil

2020 ◽  
Vol 6 (1) ◽  
pp. 1-5
Author(s):  
Seftina Diyah Miasary
Keyword(s):  
Alternative Model ◽  
Profit Sharing ◽  
Investment Model ◽  
Islamic Finance ◽  
Traditional Markets ◽  
Sharing Scheme ◽  
Underlying Principle ◽  
Two Parameters ◽  
Small Traders ◽  
Very High

Islamic finance is a financial concept based on Islamic sharia. The underlying principle of Islamic finance is the prohibition of usury, gharar and masyir. In addition to these principles, the concept of Islamic finance which is built on the basis of justice makes many people tend to choose Islamic finance rather than conventional. In this article, we will discuss the Sharia investment model with a profit-loss sharing scheme as an alternative model to replace the practice of lending money at high interest by moneylenders in traditional markets (Rentenir scheme). Both models are applied in a lending transaction between traders and investors with a share of the results in the profit-loss sharing model of 5% and interest on loan repayments for the loan sharks of 20%. Furthermore, from each model the acquisition value is calculated in the form of the optimal portion / profit ratio for each trader and investor. The results obtained indicate that the earnings obtained by traders for the Sharia model are greater than those from the Rentenir model. Furthermore, the acquisition value of investors for the Sharia model is minus and the acquisition value of investors from the Rentenir model is 25.56%. The acquisition value of investors from the Rentenir model is very high, while in the Sharia model, investors experience losses. From these two parameters it can be concluded that the Sharia model with a profit sharing scheme is a model that benefits small traders, while the Rentenir model is a model that needs to be avoided because it is detrimental to traders and also uses the concept of usury which is forbidden in Islam.

scholarly journals FAKTOR-FAKTOR YANG MEMPENGARUHI PERTUMBUHAN DEPOSITO MUDHARABAH 1 BULAN DI BANK SYARIAH MANDIRI

Media Ekonomi ◽  
2014 ◽  
Vol 22 (2) ◽  
pp. 183
Author(s):  
Nurina Kusuma Lestari ◽  
Trikunawangsih ,
Keyword(s):  
Linear Regression ◽  
Interest Rates ◽  
Multiple Linear Regression ◽  
Profit Sharing ◽  
Positive Influence ◽  
Islamic Banks ◽  
Rate Of Profit

This Study aimed to examine the effect of interest rates, the level of profit sharing mudaraba deposits and inflation. Data taken from statistical reports at Bank Indonesia and Bank Syariah Mandiri from January 2009 to December 2013. This method used is the method of multiple linear regression. Using this method along with the underlying assumptions. The result showed that the rate of profit sharing mudaraba deposits and inflation positive influence on mudaraba deposits growth of Islamic banks, and interest rates negatively affect mudaraba deposits growth of Islamic banks.

scholarly journals Pricing strategy and product quality design with platform-investment

2022 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Xiujing Dang ◽  
Yang Xu ◽  
Gongbing Bi ◽  
Lei Qin
Keyword(s):  
Product Quality ◽  
Value Added ◽  
Optimal Investment ◽  
Investment Strategy ◽  
Profit Sharing ◽  
Investment Strategies ◽  
Contract Term ◽  
Optimal Investment Strategy ◽  
Sustainable Value ◽  
Quality Design

<p style='text-indent:20px;'>With the development of business, more consumers are quality sensitive and improving the product quality becomes particularly important. We mainly discuss two investment strategies: retailer-investment and platform-investment. Compared with non-investment case, only if consumer sensitivity is not too high, it is profitable for the retailer to select retailer-investment. When both retailer-investment and platform-investment are viable, the choice of investment mechanism depends on the profit-sharing ratio. Particularly, if the ratio is within a certain range, the optimal investment strategy is platform-investment, achieving a triple-win outcome. Besides, to effectively alleviate the contradiction between the retailer's moral hazard problem and the sustainable value-added effect of platform-investment, we further research the contract term. These results give us some meaningful management inspirations in investment mechanism.</p>

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