scholarly journals An optimal Islamic investment decision in two-region economy: The case of Indonesia and Malaysia

2022 ◽  
Vol 11 (1) ◽  
pp. 1-10 ◽  
Author(s):  
Ferry Syarifuddin ◽  
Ali Sakti ◽  
Toni Bakhtiar

In this work, the possibility of cross-border activities between two regions in the framework of the investment contract is viewed as optimal allocation problems. The problems of determining the optimal proportion of funds to be invested in liquidity and technology are analyzed in two different environments. In the first case, we consider a two-region and two-technology economy in which both regions possess the same productive technology or project, but a different stream of return. While in the second case, we examine an economy where two regions (i.e., Indonesia and Malaysia) hold different Islamic productive projects with identical returns. Allocation models are formulated in terms of investors’ expected utility maximization problem under budget constraints with respect to regional and sectoral shocks. It is revealed that optimal parameters for liquidity ratio, technological investment profile, and bank repayment are analytically characterized by the return of a more productive project and the proportion of impatient and patient investors in the region. Even though both cases employ different assumptions, they provide the same expressions of optimal parameters. The model suggests that cross-border Islamic investment activities between two regions might be realized, provided both regions hold productive projects with an identical stream of return. This paper also shows that by increasing the lower return of the project approaching the higher return, a room for inter-region investment can be created. An analytical framework of an investment contract in terms of optimal allocation model is provided.

2019 ◽  
Vol 7 (1) ◽  
pp. 1
Author(s):  
Mohd Nizam Barom

Understanding Socially Responsible Investing and Its Implications for Islamic Investment Industry // // // // // Social, ethical and environmental concerns have been used as important consideration for investment decision by an increasing number of investors. This can be seen by the size and growth of the socially responsible investment (SRI) industry in the developed economies. At the same time, scholars and commentators of Islamic finance have also called for Islamic investment industry to learn from the experience of SRI in incorporating social responsibility issues in the investment process, in line with the ethical principles of Islam and the overall objective of the Shari’ah (Maqasid al-Shari’ah). This would require Islamic investment sector to have a clear understanding of the SRI industry in order to effectively benefit from its experience. This is particularly critical due to the significant diversity of investors and complexity in the issues and strategies adopted in the SRI industry. Hence, this paper adds to the Islamic investment literature by providing an extensive  and systematic survey of SRI industry in terms of its (i) underlying motivations and values; (ii) issues of concerns; (iii) types of investors; and (iv) screening strategies. It then synthesizes these components within the context of the ‘value-based’ investors. This synthesized framework offers a useful tool for Islamic investment practitioners to understand the theoretical and practical aspects of SRI. Subsequently, the paper highlights important implications of the findings for Islamic investment industry in terms of the issues that it needs to consider in emulating SRI practices and a number of lessons that it can learn from the SRI experience.  


2021 ◽  
Vol 11 (14) ◽  
pp. 6401
Author(s):  
Kateryna Czerniachowska ◽  
Karina Sachpazidu-Wójcicka ◽  
Piotr Sulikowski ◽  
Marcin Hernes ◽  
Artur Rot

This paper discusses the problem of retailers’ profit maximization regarding displaying products on the planogram shelves, which may have different dimensions in each store but allocate the same product sets. We develop a mathematical model and a genetic algorithm for solving the shelf space allocation problem with the criteria of retailers’ profit maximization. The implemented program executes in a reasonable time. The quality of the genetic algorithm has been evaluated using the CPLEX solver. We determine four groups of constraints for the products that should be allocated on a shelf: shelf constraints, shelf type constraints, product constraints, and virtual segment constraints. The validity of the developed genetic algorithm has been checked on 25 retailing test cases. Computational results prove that the proposed approach allows for obtaining efficient results in short running time, and the developed complex shelf space allocation model, which considers multiple attributes of a shelf, segment, and product, as well as product capping and nesting allocation rule, is of high practical relevance. The proposed approach allows retailers to receive higher store profits with regard to the actual merchandising rules.


2021 ◽  
Vol 70 (3) ◽  
pp. 665-696
Author(s):  
Alison Xu

AbstractThis article explores a solution to the choice-of-law issues concerning both voluntary and involuntary assignments arising in a domestic forum. The focus is on English private international law rules relating to cross-border assignments. A distinction is made between primary and extended parties as the foundation for choice-of-law analysis. Drawing on insights from the distinction of the use value and exchange value of debts found in economics, this article proposes a new analytical framework for choice-of-law based on a modified choice-of-law theory of interest-analysis.


2014 ◽  
Vol 17 (03) ◽  
pp. 1450018 ◽  
Author(s):  
ALEXANDER M. G. COX ◽  
DAVID HOBSON ◽  
JAN OBłÓJ

We pursue an inverse approach to utility theory and associated consumption and investment problems. Instead of specifying a utility function and deriving the actions of an agent, we assume that we observe the actions of the agent (i.e. consumption and investment strategies) and ask if it is possible to derive a utility function for which the observed behavior is optimal. We work in continuous time both in a deterministic and stochastic setting. In the deterministic setup, we find that there are infinitely many utility functions generating a given consumption pattern. In the stochastic setting of a geometric Brownian motion market it turns out that the consumption and investment strategies have to satisfy a consistency condition (PDE) if they are to come from a classical utility maximization problem. We show further that important characteristics of the agent such as risk attitudes (e.g., DARA) can be deduced directly from the agent's consumption and investment choices.


2013 ◽  
Vol 448-453 ◽  
pp. 995-1001
Author(s):  
Ning Na Wang ◽  
Qin Lin Zhou

An effective management of water supply is critically significant to a countrys water utilities, and accurate prediction of water supply and demand is of key importance for water supply management. The objectives of this paper are to use Grey System Model (GSM) and Linear Regression Model to forecast the water demand and water supply respectively in China 2025, and then propose a new Optimal Allocation Model (OAM) to generate solution so that analysts and decision makers can gain insight and understanding. The two predictive models take into account four major factors including domestic development, agriculture, industries and eco-environment, calculating a deficit between water demand and water supply in China 2025. Then the OAM, which considers desalinization, irrigation saving and urban recycling, provides a feasible solution to fill the gap and an effectual management of water supply.


2001 ◽  
Vol 11 (4) ◽  
pp. 1353-1383 ◽  
Author(s):  
Griselda Deelstra ◽  
Huyên Pham ◽  
Nizar Touzi

2021 ◽  
Author(s):  
◽  
Alexandra Cooper

<p>Double taxation agreements pose a particular analytical problem. While they provide a coherent structure that encourages cross-border investment, the agreements also provide opportunities for taxpayers to avoid their domestic tax obligations. To prevent tax avoidance, some countries enact domestic general anti-avoidance rules to protect their domestic interests. These rules raise questions as to what the relationship between the domestic law and the double tax agreement is. The Organisation for Economic Cooperation and Development’s Committee on Fiscal Affairs provides Commentary on the Organisation for Cooperation and Economic Development Model Double Tax Agreement. This Commentary sets out an analytical framework from which this relationship is to be evaluated. This paper argues that the framework is of little practical significance. The paper concludes that the weight and usefulness of the Commentary lies in a guiding principle set out in the Commentary. Consequently, the wider interpretative approaches do not practically add to the analysis and should be given little weight.</p>


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