The main purpose of this paper is to trace epistemological roots of conventional and Islamic finance. Based on an extensive literature review, this paper aims to highlight, explain, and discuss an ideal conventional and Islamic financial system. The ideal conventional financial system is discussed in light of various writings by Smith and Arrow, based on Arrow-Debreu model. On the other ...

Musical instruments have a long history, and many types of musical instruments have been created to attain ideal sound production. At the same time, various types of electronic musical instruments have been developed. Since the main purpose of conventional electronic instruments is to duplicate the shape of acoustic instruments with no change in their hardware configuration, the diapason and th...

Requiring many financial institutions to hold a risk-adjusted amount of capital when granting funds, the Basel II framework implies a risk dependent cost of capital for borrowing firms from year-end 2006 onwards. This novel policy of allocating capital creates and intensifies new challenges for manufacturing companies in innovative and capital intensive branches. In this regard, banks and other...

One important reason for the global impact of the 2007–2009 financial crisis was massive illiquidity in combination with an extreme exposure of many financial institutions to liquidity needs and market conditions. As a consequence, many financial instruments could not be traded anymore; investors ran on a variety of financial institutions, particularly in wholesale markets; financial institutio...

This paper establishes the asymptotic distributions of the likelihood ratio (LR), Anderson-Rubin (AR), and Lagrange multiplier (LM) test statistics under “many weak IV asymptotics.” These asymptotics are relevant when the number of IVs is large and the coefficients on the IVs are relatively small. The asymptotic results hold under the null and under suitable alternatives. Hence, power compariso...