The core principles of Islam lay great emphasis on social justice, inclusion, and sharing of resources between the haves and the have nots. Islamic finance addresses the issue of “financial inclusion” or “access to finance” from two directions — one through promoting risk-sharing contracts that provide a viable alternative to conventional debt-based financing, and the other through specific ins...

Should developing countries eschew conventional command and control regulatory instruments that are increasingly seen as inefficient and rely instead on 'alternative' instruments based on economic incentives and community pressure? This paper addresses this question as it pertains to fixed point air pollution. The paper discusses the theoretical advantages and disadvantages of alternative instr...

We suggest a way to perform parsimonious instrumental variables estimation in the presence of many, and potentially weak, instruments. In contrast to standard methods, our approach yields consistent estimates when the set of instrumental variables complies with a factor structure. In this sense, our method is equivalent to instrumental variables estimation that is based on principal components....

Based on IFRS laws, British companies have started providing their reporting systems according to International Standards Requirements regarding disclosing their financial derivatives since January 2005. In 2013, Iran revised its Accounting Standard No. 15 to include the derivative instruments. The present study aims at investigating the effect of this revision on financial derivatives and inst...

The widespread use of innovative financial transactions in international financial market in recent years is primarily driven by the need for greater financial risk management by businesses and financial investors. Many related factors have contributed to the needs of business for more sophisticated financial instruments, as well as to the financial world’s technological ability to meet that de...

Payments can be classified as high-value or low-value. High-value transactions are typically related to purchases and sales of financial assets, mainly foreign exchange and securities. These transactions usually involve only financial institutions, large companies or high net-worth individuals. Payment instruments are either cash or non-cash. Cash is probably the most important instrument for l...

I study the limit of a large random economy, where a set of consumers invests in financial instruments engineered by banks, in order to optimize their future consumption. This exercise shows that, even in the ideal case of perfect competition, where full information is available to all market participants, the equilibrium develops a marked vulnerability (or susceptibility) to market imperfectio...