Conventional Economics Research Articles

The void in finance

There is no proper place within economic thought for the void. It appears nowhere in the canonical texts of political economy, let alone the discourse of conventional economics. Yet one cannot shake the sense that it is implied in most if not all financial commentary. At the very least, the void exerts a magnetic pull on a range of related terms in the lexicon. Could it be that through these it grounds the financial imagination in fundamental ways?

Examining Disruptions of Social Systems due to Large Dam Projects in the North East

The vulnerability of the tribals to lose more than the commodity value of land due to large dam projects in the North East has not been given due attention both in policy space and empirical research. Also, the question of whether the living standards of the already displaced tribals have improved after dam construction has not been treated with rigour. The paper tries to disaggregate the social disruption effects of large dam construction along the lines of gender, religious identity and ethnic conflicts and question the conventional economics of resettlement. The study examines the claimed effects (and benefits) of large dams on tribal communities made in non-empirical papers and government documents using available real-world examples from the north-east. The study also validates the findings from the literature through a sentiment analysis of newspaper articles and a public opinion survey of dams in the north-east. This crossexamination is expected to serve as a foundation for further empirical research.

Edges of the financial imagination

Social theory and political economy have been in dialogue for long enough now that it is no longer eccentric to speak of a ‘financial imagination’: the subject's encounter with the world of money and debt is traversed by hopes and dreams. Since this has become a commonplace, two perspectives on the financial imagination have come to dominate the scholarly field.One relates it primarily to the concepts and rhetoric of economic thought, found in various traditions of political economy, economics, and finance theory. This version of the financial imagination works from the outside-in, structuring the mechanisms and movements of the financial world from the perspective of some point outside of finance. The theoretical imagination of finance has been amply explored from a range of perspectives. There are histories of financial economists, conceptual histories of finance, genealogies of financial institutions, and so on (Mehrling, 2005; Toporowski, 2005; de Goede, 2005).

ŞERİAT’N MAKSATLARI IŞIĞINDA DÖNGÜSEL EKONOMİ KAVRAMI ÜZERİNE ELEŞTİREL BİR DEĞERLENDİRME

The paradigm shift from linear to a circular economy and other development approaches, especially in conventional economics, disregard religious values of which the primary objective is to promote human wellbeing from a wider perspective. Hence, the present study analyzes the concept of circular economy in light of the purpose of Islamic law (Maqasid al-Shariah). It adopts qualitative/semantic content analysis as a research approach.
 The finding reveals that the circular economy and its related concepts are not against the objective or the purpose of Islamic law (Maqasid al-Shariah), rather it promotes it: as the preservation of life and progeny can be achieved through the circular economy’s initiatives related to the preservation of ecology and ecosystem, whereas the preservation of intellect can be achieved through the measures related to reducing harmful wastes and pollution. While the preservation of wealth can be achieved through circular economy’s measures for resource conservation.
 These findings enlighten both Muslim and non-Muslim communities; firstly on the positive stance of circular economy to the Maqasid al Shariah and secondly the need to promote the circular economy initiatives to preserve the ecological balance and environment which are the gifts from the Creator.

Endowment Effect: Experimental Tests and Literature Study

In everyday economic life, the endowment effect is a very frequent occurrence. It describes the phenomena wherein a person values a possession more highly when they own it than when they do not. At present, the psychological mechanism of this phenomenon is mainly explained by loss aversion, but this theory has great defects. A theoretical area of behavioral finance is endowment effect. In order to analyze the psychological traits of financial market subjects (decision-makers) in financial market behavior and to study investor decision-making behavior and its effects on asset pricing, the field of behavioral finance is founded on theories of behavior, finance, sociology, economics, decision-making, and psychology. It questions conventional economics. The endowment effect contradicts the rational person hypothesis of conventional economics and accurately represents the research techniques of behavioral finance. Future research can combine psychology and economics to further explore the psychological mechanism of this phenomenon. Combined with the influence of endowment on Coase theorem, explore the practical significance of endowment effect.

SISTEM BAGI HASIL SEBAGAI PONDASI STABILITAS MONETER SYARIAH

The purpose of this study is to identify a Profit-Loss Sharing System through skim mudharabah, musyarakah or in agriculture called muzara'ah as a solution to replace flowers. This research uses an empirical sociological approach method that is descriptive analysis with the use of qualitative data as the type of research and library research as one of the data collection techniques. This study concluded that: First, this form of business, is seen as fair compared to the form of business in conventional economics, because of the profits and losses that occur, all parties involved have the same rights to the business results obtained. Second, monetary policy determines a country's economic success, which is in line with the objectives of Islamic economic policy, namely maintaining and maintaining the country's economic stability. Third, policy-making measures are taken by policymakers in accordance with sharia principles, namely the profit-sharing system. Where sharia principles do not allow guarantees against face value or rate return (interest rate).

Study of Philanthropic Behaviour in Divine Economics Framework

Unfortunately, religious behaviour has been viewed by economists in terms of “Islamic economics,” “Christian economics”, etc. [Iannaccone (1986)]. Hence there has been a dichotomy prevailing between religious economic frameworks and the conventional rational choice theory.1 Whereas the conventional economists tried a variety of models to estimate the relationship between wages and time allocated to market labour supply but found that results mostly do not speak of the real world situation [Deaton (1980)]. The underlying reason was supposed to be faith and values which have strong effect on labour supply decisions [Pencavel (1986)]. The philanthropic behaviour relates to labour supply decisions directly through time allocated to voluntary services or indirectly through time allocated for earning and then donations out of these. It is observed that the variables of economic importance especially those relating to household resource allocation or labour supply decisions seem to be present in religious affiliation of individuals, their values and their perceptions about life before and after death as believed by the followers of divine religions which account for about two thirds of the world population.

MATEMATIKA DALAM KEUANGAN SYARIAH

Mathematical modeling plays a major role in various disciplines. The contribution of mathematical modeling is not only attached to the concepts of general sciences, such as conventional economics and finance, but also includes Islamic sciences, such as Islamic economics and finance. This study aims to reveal the role of mathematics in the development of Islamic economics and finance. This study uses a qualitative approach in the form of library research. The results of the discussion are expressed through the ideas described in two general information, namely: (1) The results of the analysis of mapping studies on mathematical models in Islamic economics and finance, and (2) an explanation of several examples of mathematical models applied in economic theories and Islamic finance. From the results of this study, it was found that the number of publications on the development of mathematical models in Islamic economics and finance research from 1980-2020 experienced a significant increase and also began to have a high impact on other research. In addition, the development of mathematical models in solving Islamic economic and financial problems is also a trend in current research. An example is research on the development of mathematical models on the concept of profit-sharing financing and the concept of zakat.

Economics and social stratification: classical-neoclassical economists’ thought on class structure and related phenomena

The paper re-examines the approach of conventional economics to social stratification, in particular class structure and distribution of wealth. It argues that conventional economics generally tends to assume an ambivalent, dualistic position on social stratification, especially class structure and distribution, expressed in a dual approach to the matter. The first approach consists in neglecting or downplaying stratification, plus treating it as transient and benign, and explaining and rationalising it by “natural” and/or transcendental causes. The second approach involves recognising and stressing the existence and relevance of class and generally social stratification, particularly the arbitrary institutional nature and adverse effects of the unequal distribution of wealth and income. The paper intends to make two contributions to the history of economic thought. They are, first, disclosing an implicit, rudimentary and partly overlooked debate on social stratification in the history of economic thought, and second, helping develop a more complete, explicit and systematic historical account of the subject. These goals and contributions can be of high relevance for the history of economic thought for at least two reasons. These are that, first, many economists seem unaware of some debates on social stratification within the latter, and second, a fuller historical account of the subject is necessary or desirable in view of its relative importance historically contemplated. These goals are consistent with the rebirth and growing pertinence of stratification economics. The paper can hence potentially be of interest and relevance to economists working on re-emerging stratification economics as well as to sociologists.

Manufacturer Behavior: In the Perspective of Islamic Economic and Conventional Economics

This study discusses the Theory of Producer Behavior in Islamic Economics and Conventional Economics (Comparative Study) with the following topics: (1) How is the theory of producer behaviour in Islamic and conventional economics? (2) What is the difference between the theory of producer behaviour in Islamic and conventional economics? The research that the author does is included in the research (Research library) in the form of library research that takes data from references, books, journals, and articles on the internet related to the problem. The results of the research conducted by the author can be conveyed as follows: (1) The theory of producer behaviour in Islamic economics that in creating a product or service, a producer does not only pay attention to what are human needs, but producers must also pay attention to the halal and haram of a product so as not to damage the morale of consumers. Furthermore, Islamic economics strongly encourages producers to improve the quality and welfare of the world and morals as business actors in creating happiness in the hereafter. Meanwhile, the theory of producer behaviour in the conventional economy does not pay attention to things like this. It only pays attention to how to generate maximum profits with small capital, which is very dominant. This is what causes a producer to ignore his social responsibilities. As the theory of theoretical rationality, where humans are called economically rational if they always maximize their interests, in conventional economics, the main motive of production is to maximize profits. (2) Comparison of the theories of producer behaviour in Islamic economics and conventional economics: The theories offered by Islamic economics are very different from the conventional concept of behaviour in terms of differences of opinion of scientists, their motivation, and goals in producing, and the concept. The theories observed by Islamic economic actors are monotheism, justice, freedom, belief, and halal. Penelitian ini membahas Teori Perilaku Produsen dalam Ekonomi Islam dan Ekonomi Konvensional (Studi Banding) dengan topik sebagai berikut: (1) Bagaimana teori perilaku produsen dalam ekonomi Islam dan konvensional? (2) Apa perbedaan antara teori perilaku produsen dalam ekonomi Islam dan konvensional? Penelitian yang penulis lakukan termasuk dalam penelitian (Research library) berupa penelitian kepustakaan yang mengambil data dari referensi, buku, jurnal, dan artikel di internet yang berhubungan dengan masalah. Hasil penelitian yang dilakukan penulis dapat disampaikan sebagai berikut: (1) Teori perilaku produsen dalam ekonomi Islam bahwa dalam menciptakan suatu produk atau jasa, seorang produsen tidak hanya memperhatikan apa yang menjadi kebutuhan manusia, tetapi produsen harus juga memperhatikan kehalalan dan keharaman suatu produk agar tidak merusak moral konsumen. Selanjutnya, ekonomi Islam sangat mendorong produsen untuk meningkatkan kualitas dan kesejahteraan dunia dan akhlak sebagai pelaku usaha dalam menciptakan kebahagiaan di akhirat. Sedangkan teori perilaku produsen dalam ekonomi konvensional tidak memperhatikan hal-hal seperti ini. Hanya memperhatikan bagaimana menghasilkan keuntungan yang maksimal dengan modal kecil yang sangat dominan. Hal inilah yang menyebabkan seorang produser mengabaikan tanggung jawab sosialnya. Sebagaimana teori rasionalitas teoritis, dimana manusia disebut rasional secara ekonomi jika selalu memaksimalkan kepentingannya, dalam ekonomi konvensional motif utama produksi adalah untuk memaksimalkan keuntungan. (2) Perbandingan teori perilaku produsen dalam ekonomi Islam dan ekonomi konvensional: Teori-teori yang ditawarkan oleh ekonomi Islam sangat berbeda dengan konsep perilaku konvensional dalam hal perbedaan pendapat para ilmuwan, motivasi dan tujuan mereka dalam berproduksi, dan konsep. Teori yang diamati oleh pelaku ekonomi Islam adalah tauhid, keadilan, kebebasan, keyakinan dan halal.

Literasi Ekonomi dan Keuangan Syariah bagi Santriwati di Pondok Pesantren Al Falah Puteri Banjarbaru

This community service aims to provide knowledge and skillset for the pesantren community to make well-informed and wise decisions regarding Islamic financial matters. This program was conducted at the Al Falah Islamic Boarding School for Girls (Pondok Pesantren Al Falah Puteri) in Banjarbaru. The target audience of this campaign is 12th-grade students majoring in social sciences. A total of 35 female students that were representatives from 3 different classrooms, took part in this program. Lecturers of the Islamic Banking Department, Islamic Institute of Darussalam Martapura, acted as speakers at this event. The material they deliver relates to the economy in general, a glance of Islamic economics, and introduction to Islamic financial institutions. Discussion and Q & A sessions were held as an addition to this presentation to enrich the understanding and insights of financial literacy. It was seen that the students were very excited about involving in the discussion, especially when discourse the differences between conventional economics and Islamic economics. The enthusiasm of the participants showed that they were aware of the importance of understanding Islamic economics and Islamic finance in their life.

The Effectiveness of Visual Picture Economics Textbook Based on Problem Based Learning in Improving Reading Literacy Skills

The low reading literacy of Indonesian students is still a problem in the world of education in Indonesia. Testing the feasibility of reading literacy instruments and testing the effectiveness of visual picture economics textbook based on problem-based learning in improving reading literacy skills are the objectives of this study. This type of study is quasi-experimental, with a sample of 62 students divided into classes XI IPS1 and XI IPS2. The samples in this study used the cluster random sampling method. The data taken from this study used various techniques including (1) interviews, (2) observations, (3) questionnaires, and (4) questions. Data analysis uses several techniques including (1) quantitative descriptive analysis, (2) Inferential statistical analysis was preceded by a prerequisite test consisting of a normality test and a homogeneity test followed by a t-test, and (3) hypothesis testing. The results showed that the reading literacy instrument was declared feasible and valid, and the research data were normally distributed and homogeneous. In addition, based on the t-test, the results showed that H0 was rejected and H1 was accepted, which means that there is a difference in the level of students' reading literacy skills between using visual picture economics textbook based on problem-based learning and conventional economics textbooks. In the experimental class, the average reading literacy level was 68.74 and 60.52 in the control class. Based on these results, the use of an economic textbook with visual images based on problem-based learning is more effective in improving reading literacy compared to using conventional economics textbooks. This research implies increasing reading literacy skills by utilizing visual picture economics textbook based on problem-based learning.

Perilaku Produksi Islami pada IMK Produk Halal di Masa Pandemi: Studi Kasus Shofura

According to the Islamic view, production is a human effort to achieve happiness in the world and the hereafter. The concept of production in Islam must pay attention to the principles according to Islamic Sharia and always maintain maqashid al-Sharia. Factors of production in Islam are generally the same as approaches in conventional economics, but with different perspectives. Production according to Islam must also pay attention to the benefit of the people by considering the alms variable. This paper aims to analyze the application of Islamic production behavior in Micro and Small Industries (IMK) that produce halal products, especially during the current pandemic. The research method used is the case study method, a qualitative research method based on human understanding and behavior based on differences in values, beliefs, and scientific theory, held at Shofura, IMK, a mukena producer located in South Jakarta. Based on the research, Shofura discovered has applied Islamic principles in its production behavior. Shofura is also feeling the impact of the pandemic and is making efforts to survive by focusing on online sales and premium mukena that targets the middle to upper consumer segment.
 
 Keywords: Islamic Production Behavior; Production; Small Micro Industry; Halal Products; Pandemic

Istihsan Concept in Multi Contract Online Transactions of Go-Food Services in The Go-Jek Application

Technological developments are very influential on the lives of the world's people, one of which is used for business purposes or known as Electronic Commerce (E-Commerce). Several E-Commerce facilities such as online transportation, online payments, online shopping, are practical facilities that are in great demand by the public. As an online food delivery service known as Go-Food. Go-Food application transactions or food orders have several contracts (multi-contract). This research is a field research. The data collected is analyzed descriptively qualitatively, that is, describes as clearly as possible the related data, then concluded deductively, that is, draws conclusions from statements that are general to specific. So that understanding the research results can be easily understood and understood. Some of the contracts in Go-Food transactions are as follows: PT. Go-Jek and merchants. PT. Go-Jek with merchants is an ijarah agreement. Transactions between Pt. Go-Jek and Driver, a collaboration between Go-Jek and drivers and known as the cooperation system (Syirkah). Contract between the consumer and the driver, if the consumer makes a payment using his own go-pay system, the transaction that occurs between the two is buying and selling, but if it is in cash, then there is a wakalah contract, here it will also be a qardh contract because the consumer owes it to the driver. Contracts between drivers and merchants, there are buying and selling activities between drivers and merchants, buying and selling represented by the driver to the merchant, representative transactions like this in Islamic law are known as wakalah contracts. With the istihsan method, economic activities that provide convenience and good benefits without harm and injustice to mankind can be answered and proven by the istihsan method, so that sharia economic activities can always exist and can compete with conventional economics.

Decision-making under Uncertainty: A Cognitive Approach

Conventional economics believes that individuals are rational in their decisions based on five factors such as: considering all known options; using the maximum amount of available information; determining the precise weight -albeit subjective- of the costs and potential benefits of each option; accurate calculation -albeit subjective- of the various possible consequences; and the maximum amount of common sense considering all factors; are seeking to make sensible decisions. However, these factors have not always been fully established, perhaps even Individuals may be exposed to the uncertainty that jeopardizes decision-making. This is an applied and developmental research, with the type of library study and using the new findings of cognitive science, he explains how to make decisions under uncertainty. The findings of this study indicate the role of OPFC in decision-making, especially in the face of emotional factors and complex decisions that are all made by the PFC. In the face of risks of uncertainty, both of VPFC and VS sectors are active. The striatum is associated with loss aversion of people. Also, the role of the striatum in learning and habit formation can also be mentioned; so that information about uncertainty transmits through the striatum to the PFC section, and because the striatum transmits information to the brain via dopamine neurons, so by repeating behavior and receiving a reward, that behavior has become a habit, then belief Systems and mental models have been formed. Repeating uncertainty ultimately disrupts an individual's cognitive system, creates irrational beliefs, and increases people's uncertainty.

Misapplication of Conventional Economic Analysis to Climate Change From the Post-normal Science Perspective: The “Social Cost of Carbon” Myth

A critical reflection over the latest comprehensive reporting efforts of the Intergovernmental Panel on Climate Change (IPCC) suggests that applications of cost-benefit analysis (CBA) to climate change, acts which importantly include the monetary calculation of the social cost of carbon (SCC), do not bring about the avoidance or mitigation of pervasive and irreversible climate change issues, issues which could likely continue on a multi-century to millennial time scale. This paper presents, first, a consideration of the most recent IPCC reports that indicated various contemporary problems and threats both to socioeconomic systems and ecosystems on this planet if and when CBA is uncritically applied to climate change issues. Following, a critical reexamination of three crucial concepts, namely, scarcity, discounting and substitution, is made in view of the roles they play in the theoretical foundation of conventional economics. Climate change is shown to be far beyond the scope of these concepts, hence far beyond the scope of CBA and the SCC approach. A discussion of a general alternative approach to addressing climate change issues is presented—one grounded in post-normal science that acknowledges the critical role deep uncertainty plays in many aspects of climate change issues. Reflecting on the need for such an approach and the shortcomings of past, conventional approaches suggests that establishing a process of social resolution of fundamental problems, including participation and mutual learning among relevant stakeholders, rather than a definite solution or technological implementation, is absolutely necessary. A critical study on many aspects of uncertainty is required for reaching constructive disagreement among stakeholders

Failing to Succeed? The Cambridge School and the Economic Case for the Minimum Wage

The case of the British minimum wage illustrates the interplay of ideas and interests in the making of labour legislation. In the 1980s, the pragmatic and data-driven approach of the Cambridge School, associated with the Department of Applied Economics (DAE), advanced a case for the minimum wage which combined fairness and efficiency justifications. Through collaboration with trade unions and think tanks, the argument was mobilized into an activistled campaign which changed political perceptions of the minimum wage. During the 1990s the campaign looked to have failed, as a more conventional economics informed the passage of the National Minimum Wage Act 1998. In the long run, however, the case made by the Cambridge School has endured, to inform today’s global movement for a living wage. Cambridge School, Department of Applied Economics, National Minimum Wage Act, National Living Wage, Low Pay Commission

QURTHUBI’S VIEW: CONSUMPTION BEHAVIOUR IN SURAH AL-A’RAF VERSE 31

Consumption activity in Islamic teachings is one of human economic activities that aims to increase worship and faith in Allah SWT in order to get peace, victory and prosperity in the hereafter (falah), either by spending money or income for his own needs or for good deeds for others. In the view of conventional economics, consumption activities are closely related to maximizing satisfaction (utility). In this study, the data used is qualitative data with the data source used in the book of Tafsir Al-Qurthubi. Consumption behavior in Qurthubi's view is that consumption is limited to meeting needs not desires, the purpose of consumption is to maximize benefits not just satisfaction, eating and drinking that is lawful and good, should not be excessive in consumption but is more recommended to be proportionate according to each individual's needs. as a form of health care.

Islamic Vs Conventional Economics, The Impact of Interest Rates on the Indonesian Economy

This study investigates the impact of interest rates and the economy in Indonesia as a country with a Muslim population in the world but does not prohibit interest rates in the positive laws of the Republic of Indonesia. The research period for this study is from 1990 to 2020, and we use secondary data that we collect from World Bank data. We use an autoregressive vector model. We found that The lower the interest rate, the more it encourages economic growth and vice versa. Interest rates put pressure on the real sector because interest rates are the cost of capital that weighs on the economy. Low interest rates bring improvement and better economic growth. This proves that interest rates which in Islamic economics are still forbidden have a bad impact on the Indonesian economy.

Putting value creation back into “public value”: from market-fixing to market-shaping

ABSTRACT In conventional economics, value creation occurs in the private sector with the state limited to correcting for “market failures”. Public management scholars have developed the term “public value” to describe how public sector managers can engage citizens in shaping effective policy. A more ambitious concept of public value rejects the “market failure” framework and puts public value at the centre of the economy. Public value is created by public sector actors creating and co-shaping markets in line with public purpose. This direction-setting role enables different sectors to collaborate to address major societal challenges, such as climate change and inequality.