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Price behaviour, vintage capital and Islamic economy

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Author Info
Toseef Azid
Mehmet Asutay
Muhammad Junaid Khawaja
Abstract

Purpose – To find out the behaviour of firms with objectives of Islamic Shariah when a number of techniques are working simultaneously with the different productive efficiencies. Design/methodology/approach – This is a theoretical paper based on the modified model of layers of techniques which was initially developed by Professors W. Leontief and P. N. Mathur and tries to evaluate the impact of entrance of new techniques on obsolescence in the ethical-moral cum economic framework of Islamic political economy system. Findings – This study suggests wastage of the resources because of their economic obsolescence and on the cost of future generation is not allowed in the system of Islam and ultimately decrease the social welfare level. Research limitations/implications – A dynamic cum marginal input-output table can be constructed on the basis of this framework and formulate the socio-economic policy. Originality/value – This research is beneficial to the researchers, policy makers and social scientists for the enhancement of the level of social welfare through this model.

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Publisher Info
Article provided by Emerald Group Publishing in its journal International Journal of Islamic and Middle Eastern Finance and Management.

Volume (Year): 1 (2008)
Issue (Month): 1 (April)
Pages: 52-68
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Handle: RePEc:eme:imefpp:v:1:y:2008:i:1:p:52-68

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Related research
Keywords: Economic theory; Islam; Obsolescence; Social policy;

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This page was last updated on 2009-12-18.


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