Islamic Finance in the Light of Modern Economic Theory

Part I. Islamic Finance: Rationale, History, Instruments and the Legal Framework

1. Introduction
Suren Basov, Ishaq Bhatti

2. Islamic Financial Instruments
Suren Basov, Ishaq Bhatti

3. The Historical Roots and Evolution of Islamic Financial Thought
Suren Basov, Ishaq Bhatti

Part II. The Law of Unexpected Consequences

4. The Incidence of Taxation
Suren Basov, Ishaq Bhatti

5. The Basics of Corporate Finance: TheMiller–Modigliani Theorem
Suren Basov, Ishaq Bhatti

Part III. Game Theory and Mechanism Design

6. Game Theory
Suren Basov, Ishaq Bhatti

7. The Revelation Principle
Suren Basov, Ishaq Bhatti

8. Monopolistic Screening
Suren Basov, Ishaq Bhatti

9. The Multidimensional Screening Model
Suren Basov, Ishaq Bhatti

Part IV. Mechanism Design Applications to Islamic Finance

10. Business Loans, Trust, and Contract Restriction Faced by Islamic Banks
Suren Basov, Ishaq Bhatti

11. Loans Provision and Adverse Selection Within Orthodox Religious Communities
Suren Basov, Ishaq Bhatti

12. Shariah Compliance and Risk-Incentive Trade-Offs
Suren Basov, Ishaq Bhatti

13. Shariah Compliance, Positive Assortative Matching and the Performance of IFI’s
Suren Basov, Ishaq Bhatti

14. Optimal Incentives for Takaful Operators
Suren Basov, Ishaq Bhatti

15. Can Short-Selling Prohibition Be Optimal?
Suren Basov, Ishaq Bhatti

16. Conclusions
Suren Basov, Ishaq Bhatti

Keywords: Economics, Economic Theory/Quantitative Economics/Mathematical Methods, International Economics, Cultural Economics, Heterodox Economics