Conventional Economics Research Articles

Persepsi Mahasiswa Hukum Ekonomi Syariah (Hes) Terhadap Mata Kuliah Ekonomi Konvensional


 
 
 
 To find out the perception of Islamic economics law students against conventional economics courses compared to Islamic economics courses, find out the relevance of both to the level of success and know the factors forming the perception of this conventional course. This type of quantitative research and in the form of secondary data that pour numbers, starting from data collection, interpretation of the data, and the appearance of the results. The population of this research is students of Islamic Economics Law IAIN Tulungagung. By presenting a sample of IAIN Tulungagung Islamic Economics Law majoring students taking conventional economics courses as many as 100 students were drawn from six sharia economics law classes. This research is based on qualitative data with quantitative data, we will present the data in graphical form then clarified with the description below. Respondents have positive perceptions about the importance of studying conventional economics and its relevance to increasing insight into the field of conventional economic scholarship. Respondents believe that conventional economics can help with certain legal issues. And conventional economics can create opportunities for ease and smoothness in undergoing a career later as law enforcement. Respondents proved to have a positive perception of conventional economic learning. This learning has benefits in getting good judgment. It was found that there are many factors that influence HES students in studying conventional economics. It can be seen that the important factor is the HR factor, namely the students themselves and the lecturer as the material deliverers. Motivation, students' perspectives and the insight of lecturers delivering the material are believed by the respondents as the main factors influencing their success in studying this conventional economic course. Factors that are considered to hinder the learning process of information systems in the HES department are as follows: Interest and motivation low for conventional economics learning; students' negative perceptions about the relevance of information systems to conventional economics.
 
 
 
 

Why African American Economists Should Abandon Mainstream Economic Theory ASAP

Markets have 14 Achilles heels that reduce the chances of those born into poverty to succeed in today’s complex economy. These intrinsic imperfections, generally overlooked in mainstream Econ 101, include costly information that implies that its acquisition by poor people requires a greater share of their income. Because of inferior schooling opportunities, the poor are more exposed to the myriad of problems associated with bounded rationality. That tastes are assumed to be exogenous is hardly a benign oversight, because people enter the market as children; so the market has a long time to affect their character. This has a harsh effect especially on poor children because they are particularly vulnerable to advertisements and Pavlovian conditioning. Opportunistic behavior means that people with better information can take advantage of others in an immoral, unprincipled, cunning, crafty or deceptive manner. Because of less information at their disposal and because of inferior schooling, minorities are more exposed to the vagaries of predatory advertisements. This often leads to exploitation by people with more power. Mainstream Econ 101 overlooks these Achilles heels. Hence, economists who teach conventional economics provide succor for the maintenance of the status quo which finds minorities in a disadvantageous position in U.S. society.

Implementation of dual monetary policy and its relevance to inflation and unemployment in the Phillips curve context in Indonesia

Purpose Studies linking monetary policy to inflation and unemployment rates in the context of the Phillips curve are limited to conventional economics. On the other hand, research related to application of the dual monetary policy is limited to discussion of monetary policy transmission lines, especially in Islamic banking channels. Therefore, this study aims to determine the monetary policy response in implementation of the dual monetary policy to two important indicators in the macro economy, namely, inflation and unemployment. In addition, the study reveals the relevance of the Phillips curve in Indonesia. Design/methodology/approach The method used is vector auto regression vector autoregression (VAR) with monthly data from February 2005 to October 2016 for the first model and semi-annual data from February 2005 to August 2017 for the second model. Analysis of VAR estimation in this research uses the impulse response function (IRF) to analyze the degree of sensitivity or responsiveness to a shock between variables and the variance decomposition (VD) application to analyze how the proportion of each independent variable’s contribution affects the money supply. Findings The result shows that monetary policy has responded appropriately to the problems of inflation and unemployment. However, inflation generates a bigger response than unemployment. Bank Indonesia considers the inflation expectations aspect of both conventional and Islamic references. Finally, the concept of the Phillips curve proves to be irrelevant in Indonesia. Practical implications The central bank is expected to build a more effective policy for transmission from the monetary sector to the real sector to effectively overcome the problems of inflation and unemployment. Furthermore, Indonesia needs to increase policies to overcome problems on the supply side. Originality/value The results of this study provide new insights into application of the dual monetary policy toward inflation and unemployment.

Behavioral Facilitation of a Transition to Energy Efficient and Low-Carbon Residential Buildings

Reducing carbon emissions from the building sector is an international policy priority, as a consequence of the Paris Climate Accord obligations. The challenge for policy makers is to identify and deploy effective policy instruments targeting this sector. Examining the mechanics of policy operation in the residential sector is particularly instructive, because of the high level of building activity, diverse stakeholders, and complex policy considerations—involving both consumers and industry stakeholders. Energy policy initiatives undertaken by the European Union provide pertinent case studies; as does the operation of Australia’s national building code. The paper builds upon earlier research examining the application of socio-economic transition theory to the regulation of the building sector. Here, building policy options are examined from a behavioral economics perspective, where stakeholder actions in response to strategic initiatives are considered in socio-psychological terms. The application of behavioral economics principles to building policy has the potential to impact all of the stages of the building lifecycle, from design through construction to operation. The analysis reveals how decision-making by building industry stakeholders diverges substantially from the assumptions of conventional economics. Significant implications then arise for the framing of building sector climate and energy policies, because behavioral economics has the potential to both contribute to the critical re-appraisal of current policies, and also to provide innovative options for refining interventions at key stages in the building lifecycle.

STRATEGI PENETAPAN HARGA KOMODITAS DALAM PERSPEKTIF EKONOMI SYARIAH

Harga memiliki peran yang sangat penting bagi kelangsungan hidup perusahaan. Strategi penetapan harga komoditas banyak dibahas dalam ekonomi konvensional, demikian pula penerapannya telah banyak dilakukan baik untuk mempertahankan usahanya maupun untuk bersaing memenangkan pasar. Namun apakah strategi penetapan harga tersebut sudah sesuai dengan aturan hukum Islam. Tujuan penelitian yang ingin penyusun capai adalah untuk mengetahui strategi penetapan harga komoditas dalam perspektif ekonomi syariah, Serta peran pemerintah dalam menangani permasalahan harga dalam pasar.
 Penelitian ini merupakan penelitian studi pustaka (library research design) dengan menggunakan pendekatan secondary analysis adapun pendekatan ini terbagi menjadi dua tahap yaitu tahap deskriptif dan tahap evaluatif. Instrument dan teknik pengumpulan data yang digunakan adalah metode dokumentasi. Teknik analisis data yang digunakan adalah dengan teknik analisis kualitatif dengan pendekatan kepustakaan yang dilakukan dengan menggunakan tiga komponen produk yaitu data reduction dan pengumpulan data, data display, dan conclusion drawing, yaitu mereduksi dan mengumpulkan berbagai data dan teori yang berhubungan dengan tema sentral dengan berbagai sumber serta mengklasifikasikannya untuk kemudian diuraikan secara sistematis, selanjutnya dilakukan kajian dan pembahasan untuk kemudian diambil kesimpulan atas permasalahan yang diteliti.
 Hasil penelitian diketahui bahwa strategi penetapan harga komoditas dalam perspektif ekonomi syariah dapat diterapkan dengan cara melihat kondisi pasar, baik permintaan maupun penawaran. Tidak seperti prinsip strategi penetapan harga komoditas dalam ekonomi konvensional yang memiliki tujuan akhir, yaitu maksimalisasi keuntungan dan mencari keuntungan untuk tujuan menghimpun kekayaan. Prinsip ekonomi syariah dalam harga, yaitu untuk meningkatkan kesejahteraan masyarakat dalam hal distribusi pendapatan. Mekanisme pasar tidak selalu dapat berjalan sesuai dengan konsep yang sudah ada, dengan demikian diperlukan peran pemerintah sebagai badan pengawas dalam menangani permasalahan harga di pasar agar terhindarnya dari masalah distorsi pasar. Namun pemerintah dilarang melakukan intervensi apabila pasar sedang berjalan normal.
 
 
 Kata kunci : Harga Komoditas, Kondisi Pasar, Peran Pemerintah, Ekonomi Syariah

Permintaan, Penawaran Dan Keseimbangan Harga Dalam Prespektif Ekonomi Mikro Islam

In general, we believe that humans are social creatures with the need to complement each other’s lives, with each other's unlimited desires. While a Muslim is only allowed to consume halal and good. In Islamic teachings, illicit goods for consumption are not allowed to be made the basis of buying and selling or other transactions. In the demand and supply curves of Islam there are restrictions that must be done as a Muslim which is used as a basis for economic behavior. These restrictions are prohibited from making mafsadah, gharat, maisir, usury. This paper will answer the question how is the demand, supply and price balance in the perspective of Islamic microeconomics. The results of research shows that the concept of demand and supply in Islamic Islam aims to obtain prosperity or victory in the hereafter (falah) as a derivation of the belief that there is an eternal life after death, namely the after life, so that the existing budget must be set aside as provisions for the afterlife, such as alms and zakat. This means that there is a significant difference between conventional demand theory and Islamic demand theory. In conventional economics, consumers and producers have motivations that are dominated by the values of satisfaction, but in Islamic economics emphasizes only the level of need. The Islamic price balance mechanism in Islam is determined by the balance between demand and supply. This means that the price balance in the market is formed naturally, not because there is interference from the capitalist who can distort the market. This shows that the price regulation is left to the natural impersonal market mechanism. Keywords: Demand, Supply, Islamic perspective

Microgrid planning considering the resilience against contingencies

Increasing the redundancy of distribution lines and increasing the penetration of distributed energy resources (DERs) both help microgrids ride through contingencies. However, it remains a challenging problem for how to coordinate these two measures for minimising the deployment cost while guaranteeing a pre-specified degree of resilience in case of contingencies. Accordingly, this study proposes a novel microgrid planning model to site and size candidate sets of DERs and distribution lines in close coordination, which is mathematically equivalent to a two-stage robust optimisation problem. In particular, the resilience level of microgrid operations is quantified and maintained such that the load loss is constrained within a given bound under any realisation of N – k contingencies. The proposed model also incorporates a practical strategy to maintain the radial topology of islanding network sections in any N – k contingency. Finally, numerical experiments based on two microgrid test systems are performed. The results show that the system resilience is adaptively enhanced through optimally placing DERs and distribution lines compared with the conventional economics based model. Moreover, the employed robust method is at least ten times faster than the reliability-based method in identifying the worst contingency.

Islamic and Conventional Economics – Dialogue and Ethics

Dialogue and intellectual trade between Islamic economics and conventional economics has been active and mutually beneficial for more than 40 years. I present some concrete examples of this in the current paper. I then assess recent calls for a complete break of Islamic economics with conventional economics, and find them clearly inconsistent with Islam’s actual approach to culture and institutions in preIslamic Arabia. The Islamic approach shuns blanket acceptance or rejection of any piece of human knowledge, and calls for detailed case by case assessment, then adoption, rejection, or acceptance after modification. The Islamic approach also insists on severability wherever possible, to salvage good parts from a bad whole. One particular argument for total break from conventional economics, is its assumption of selfishness of economic agents. I demonstrate that this is an overreaction by giving specific examples of Muslim jurist’s nuanced view of selfishness (or self-interest): when acceptable, when discouraged, and when completely prohibited. I conclude that from an Islamic point of view, a break with conventional economics is not justified. Continued engagement with conventional economics is necessary and mutually beneficial, provided due attention is given to: (a) the non-selfish sectors, and (b) to behavioral and institutional reforms. Finally, the paper comments on ethics in conventional economics and Islamic economics.

Launching a Revolution, based on Islamic Foundations

Conventional economics is deeply and fundamentally flawed, beyond the possibility of reform and repair. Its failings in the real world became obvious to all following the global financial crisis. The root of the problem is the theory of human behavior represented by “homo economicus”. The idea that short-sighted greed is “rational” is sheer folly. The theory is maintained in face of overwhelming empirical evidence to the contrary only because it serves the ideological interests of the rich and powerful capitalist classes. The philosophy of wealth maximization has led to the destruction of families, societies, economies, environment, fauna, and flora, as all are ruthlessly exploited for the creation and maximization of profits. Islamic teachings created a revolution in world history by promoting a society based on cooperation, generosity, and social responsibility. These ideas, completely missing from modern economics, have the same revolutionary potential today. The challenge for the Muslims today is to demonstrate this potential by translating these ideas into reality.

Economics and Apologetics—The Ideology/Utopia of Laissez-Faire and its Discontents

:This article explores elements of apologetics in conventional economics. It argues that much of the latter is apologetics in the form of the ideology or utopia of laissez-faire, and many of its representatives are apologists of the latter. The article first examines instances of unconditional laissez-faire apologetics and extreme apologists. Then it presents cases of qualified laissez-faire apologetics and moderate apologists. Lastly, it identifies some examples of laissez-faire non- and anti-apologetics and critics expressing discontent with apologetic economics. The article aims to contribute to a fuller understanding of the relationship between economics and social science overall and ideology, politics, and related non-scientific elements.

MAZHAB PEMIKIRAN EKONOMI ISLAM KONTEMPORER

Since the 1970s, studies of the Islamic economy have developed rapidly. Various topics around Islamic economics are discussed, ranging from Islamic economic philosophy, Islamic economic system, Islamic criticism of conventional economics, Islamic economic history and thought, to the Islamic financial system. There are several factors that encourage the development of Islamic economic scholarship, some of them are: personal motivation to promote Islamic economics, sponsorship from academic and non-academic institutions as well as organizations, Muslim societies, Muslim student associations, and also the dedication of publishers. As time goes by, Islamic economics bears many figures with various Islamic economic schools. According to the writer's findings there are at least five schools of contemporary Islamic economic thought, they are (1) Baqir al-Sadr, (2) Mainstream, (3) Alternatives, (4) Hamfara, and (5) Murabitun.

Is Demographic Information Influence Risk Tolerance/Aversion in Investment Decision? Evidences from Literature Review

Investment decisions are usually being complicated by emotional process, mental mistakes and individual personality traits. In almost every important economic decision, the concept of risk in one hand, and uncertainty on the other hand, play a major function. Consequently, the objective of having an understanding and at the same time predicting the behaviour of an economy is intimately linked to understanding individual attitudes towards risk. behavioural finance happens to be a contemporary field that tends to merge the theory of behavioural cognitive psychology with conventional economics and finance with a view to giving reasons on why individuals made financial decisions that are irrational. The focus of behavioural finance is to study the final decision-making process and risk judgement of investors taking into consideration the theories and concepts that influences them. During investment decision making, the behaviour of an investor is affected by several factors. One of such decision influencing factors among others is demographic profile of investors. Different attitudes towards decision making were exhibited by respondents with diverse occupation, marital status, family size, income level, age and gender. They were also grouped into adverse risk and risk seeker.

Equilibrium in Ethic Economics

We will study the concept of equilibrium in conventional and ethic economics in this paper. By a general review of the subject of equilibrium from basic sciences' point of view, we will study the meaning of equilibrium at different levels of micro, macro, and international economics; and by considering the lust and anger powers of human being, the concept of optimizing human behavior in Neoclassical theory will be studied. The hypothesis of “rational behavior” and philosophical and the root of thoughts and human behavior modeling in neoclassical economics will be analyzed from pleasure or utilitarianism-based point of view. By putting forward the concept of “perfection” as materializing innate power of creatures, we introduce the concept of ethic science so that we will review the correctness and goodness of actions and qualities of the human being in the process of optimizing economic behavior. Level of equilibrium in the powers as prescribed by ethic science with the meaning of preventing overindulgence and under-indulgence will be discussed. The meaning of equilibrium in ethic economics is a global optimum and in the form of utility point of view, has a broader domain of qualities and intellectualities and human being spirituals always at least is in a position that is better than Neoclassical optimized behavior (which is a local optimum).Some qualities related to economic behavior and overindulgence and under-indulgence and their equilibrium have also been considered. Equilibrium in ethic economics means using resources and locating everything in its right position and in the direction of obtaining human being perfection. Putting things in their right position is the optimal use of them from a mathematical point of view, and perfection is defined as reaching the ultimate innate of every creature. This means that in order to maximize the utility, resources should be used in a manner that in addition to ensuring human being material needs, assure the necessary background for maximizing mental and spiritual growth and elevation of him.
 DOI: https://doi.org/10.5281/zenodo.3402335

Elimination of Excess Capacity in Monopolistic Competition: An Alternative Approach

Monopolistic competition is a real life market structure in which the elements of both perfect competition and monopoly exist. The paper examines the properties of perfect competition and monopoly under the purview of both conventional and Islamic economics. It finds that perfect competition is permissible in Islamic economic framework but monopoly is not. Monopolistic competition, however, cannot be fully abolished because of its real life relevance. The main problem lying with the monopolistic competition is that each firm preserves the capacity of producing more than what they produce in equilibrium- this is generally known as excess capacity. The current paper proposes a model that eliminates excess capacity and shows how the monopolistically competitive firms may remain at an output level that is socially optimum. The proposed model is a modification of Chamberlin (1933) model. According to the proposed model, the firms will produce socially desirable output if they are given some incentives. Amount of required incentive is the difference between the cost of producing additional units of output and the profit foregone due to the deviation from profit maximizing output level.

Always Rational Choice Theory? Lessons from Conventional Economics and Their Relevance and Potential Benefits for Contemporary Sociologists

The paper reconsiders the problem of whether traditional economics constitutes or comprises rational choice theory in the sense of a comprehensive economic model of and approach to human action and society. Rational choice theorists in economics as well as sociology and beyond claim that their theory and approach is founded in, derived from and justified by classical and neoclassical economics, especially its major figures. This reconsideration casts strong doubt on such claims to “rational choice” traditional economics. It argues and shows that both classical political economy and neoclassical economics essentially is or has no rational choice theory. This applies to virtually all the major economics classics and neoclassics, with some exceptions among their lesser counterparts. The paper aims to contribute to understand better the origins and rationale or lack thereof of rational choice theory and the economic approach to behavior and their implications for its sociological version. The rationale/benefit of this analysis and its finding for contemporary sociologists is three-fold. The first relating to rational choice sociologists is showing that classical/neoclassical economics is not rational choice theory and does not represent their theoretical foundation and precursor. The second pertaining to economic sociologists is demonstrating that conventional economics has elements of economic sociology, especially more than of rational choice theory. The third concerning other sociologists is to make them more familiar with the original ideas of conventional economics as distinct from their interpretations by contemporary economist pursuing the economic approach and rational choice theory.

E. F. SCHUMACHER AND THE MAKING OF “BUDDHIST ECONOMICS,” 1950 – 1973

Until around 1950, the German émigré Ernst Friedrich Schumacher (1911–1977) was a relatively conventional economist, believing in progress based on economic growth and developments in science and technology. Then, as he turned forty, he went through a period of prolonged self-examination and spiritual quest, which, amongst other things, led him to become critical of Western modernity. Developing a great interest in Buddhist spirituality and culture, in 1955 he travelled to Burma, where he spent three months as a United Nations consultant. His encounter there with the encroachment of Western development upon a traditional society proved pivotal for him, confirming his skepticism about modernity and stimulating him to write a renegade essay, “Economics in a Buddhist Country.” This experience in Burma shaped his work thereafter, as contributor to debates on development both East and West, as promoter of intermediate technology, and as author of the prophetic, popular book of 1973 Small Is Beautiful: A Study of Economics as if People Mattered.

A Protestant Rethinking of Economics for a Healthier World

AbstractNeoclassical economic theory delivered upon its promise. It showed how the liberation of markets from government constraints could bring about a rapid expansion in the production of consumer goods. That was a major accomplishment. However, it came with a price in terms of social fragmentation, economic inequality, and a planetary ecosystem that is now overwhelmed by human activity. Continuing to follow the course plotted by conventional economics is a path to disaster. The world needs alternatives. Marxism has been tried and found wanting in many respects, including its abysmal environmental record. This article offers help from an unlikely source: insights of Reformed Protestantism that can be traced back to John Calvin in the 16th century. Although Calvin and Calvinism are better known for a harsh view of human sinfulness, Calvin also contributed to the development of liberal democracies by advocating representative government, universal education, and greater participation by more people. Reformed theology emphasizes the importance of widespread participation in decisions, including economic decisions, at every level of society, and provides a positive role for institutions, including government, to protect the common good. It also points toward the need to situate economic policy in the larger domains of social and ecological health. Above all, it denies the validity of any economic system that deifies economics as such, and provides criteria for judging the effectiveness of economic systems as well as the evils of externalizing social and environmental costs in the name of a false efficiency.

Pembangunan Ekonomi Islami Menurut Fahim Khan Dan Umer Chapra: Sebuah Kajian Komparatif

Every economic system in the world is the ultimate goal of creating a prosperous, just and equitable life. The effort to achieve this goal is economic development. The highest achievement in the Islamic economic system is the fulfillment of fala>h}, while fala>h} can be achieved by fulfilling the concept of maqa>s}id shari>ah, meaning say, preservation of beliefs, soul, spirit, heredity and property. Some theories about economic development strategies are often formulated by conventional economists framed by the ideology of capitalism and socialism. But the idea can not be separated from the critical projector. In the ranks of contemporary Islamic economic thinkers, criticism of Western development strategies is accompanied by an alternative offer. The object of this research is the reflection of Fahim Khan and Umer Chapra on economic development. This research uses qualitative method, with comparative descriptive analysis technique. From the existing data, the author tries to describe the two objects of research and analyze it, then compare the results of two research objects. After knowing the location of equations and differences, the authors analyze the factors that underlie it. The results show that there are similarities with the problems faced by developing countries. This is the high rate of unemployment or overwork. Fahim Khan also proposes economic development strategies for surplus countries by opening up and animating entrepreneurship as well as institutional support based on a partnership with the system (profit and loss sharing). If the theory of Chapra has nothing to do with the strategy it proposes, it is only the result of the criticism of capitalist and socialist existence that has failed to overcome the problems facing the developing countries. Its strategy focuses on four important elements: moral filters, correct motivation, socio-economic restructuring and the role of the state. There are 5 characteristics that influence the factors that cause the differences and similarities between Fahim Khan's and Umer Chapra's theories on economic development: action, context, history, power, and ideology. Keywords: Fahim Khan's Theory, Umer Chapra's Thoughts, Islamic Economic Development

DETERMINAN KONSUMSI PADA NEGARA MAYORITAS BERPENDUDUK MUSLIM DAN NON-MUSLIM: STUDI KASUS INDONESIA DAN SINGAPURA

<p>Consumption is an activity carried out to fulfill the needs of human life. In the principles of conventional economics, the main purpose of consumption activity is to achieve<br />maximum satisfaction. However, the main purpose of consumption activities according to Islamic economics principles is to achieve maslahah. The purpose of this study is<br />to know the factors that affect consumption in a country with majority of moslim and non-moslim populations with sample Indonesia and Singapore. To find out the factors that affect<br />consumption in those countries, then use secondary data with type of time series in the period 1987 - 2017 which are obtained from the publication of the World Bank. The<br />dependent variable used is the amount of consumption included goods and services in Indonesia and Singapore, while the independent variables used are macroeconomic<br />variables consisted by the level of nominal income in Indonesia and Singapore, real interest rate, and average exchange rate of the Rupiah and Dollar Singapore per US Dollar. The method used in this study is Vector Error Correction Model (VECM) with three main outputs <br />namely Granger Causality, Impulse Response Function (IRF), and Variance Decomposition (VDC). The results show that there are three one-way causality relationships in the<br />variables used for Indonesia and Singapore. In addition, the estimation results <br />of VECM show that the independent variables used have an influence on consumption both <br />in Indonesia and in Singapore. The results of this analysis are also strengthened by the results of consumption responses to shock other variables and the contribution of each independent variables to consumption formation in Indonesia and Singapore.</p>

Corporate Social Responsibility: An Islamic Approach

Social responsibility has become increasingly important in recent times. The term “corporate social responsibility” (CSR) is also found in the literature, treated by the Islamic economy and finance. Islamic CSR is based on the principles of Shariah. Therefore, the main objective of this paper is to study CSR approaches of Islamic and Conventional Economics. Financial institutions, corporations and enterprises need much more to do CSR practices, to promote CSR that underpinned under the principles of Shariah. The main goal of the paper is to analyse and explore the theoretical and practical aspects of social responsibility from the aspect of Islamic economy and finance. The conducted research showed that there is no significant deviation of the principles of Islamic economy and finances versus the traditional principles of social responsibility. The only difference is that the principles of Islamic economy and finances include a higher degree of application of ethical principles, which should result in moral and ethical economic development of society.