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Price behaviour, vintage capital and Islamic economy

Toseef Azid (Bahauddin Zakariya University, Multan, Pakistan Markfield Institute of Higher Education, Markfield, UK)
Mehmet Asutay (School of Government and International Affairs, Durham University, Durham, UK)
Muhammad Junaid Khawaja (UAE University, Al‐Ain, United Arab Emirates)

International Journal of Islamic and Middle Eastern Finance and Management

ISSN: 1753-8394

Article publication date: 4 April 2008

Abstract

Purpose

To find out the behaviour of firms with objectives of Islamic Shariah when a number of techniques are working simultaneously with the different productive efficiencies.

Design/methodology/approach

This is a theoretical paper based on the modified model of layers of techniques which was initially developed by Professors W. Leontief and P. N. Mathur and tries to evaluate the impact of entrance of new techniques on obsolescence in the ethical‐moral cum economic framework of Islamic political economy system.

Findings

This study suggests wastage of the resources because of their economic obsolescence and on the cost of future generation is not allowed in the system of Islam and ultimately decrease the social welfare level.

Research limitations/implications

A dynamic cum marginal input‐output table can be constructed on the basis of this framework and formulate the socio‐economic policy.

Originality/value

This research is beneficial to the researchers, policy makers and social scientists for the enhancement of the level of social welfare through this model.

Keywords

Citation

Azid, T., Asutay, M. and Junaid Khawaja, M. (2008), "Price behaviour, vintage capital and Islamic economy", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 1 No. 1, pp. 52-68. https://doi.org/10.1108/17538390810864250

Publisher

:

Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited