Chapter 10 Circular Causation Relations Using Malaysian Data on Money and Real GDP

Abstract

Negative ηi,j(θ)-values denote marginal rates of substitution except when they denote the replacement of “bads.” There cannot be substitution between “goods” in an endogenously knowledge-induced Islamic socioeconomic order. Likewise, the shari'ah avoidance of “bads” does not legitimate the acceptance of a quantity of one bad by another bad, negating marginal rate of substitution in such a case and in the case of goods related with goods. Thus, the shari'ah principle is that a good cannot be traded off with a bad; a bad cannot be traded off with a bad; and a good cannot be traded off with a good.

Citation

Alam Choudhury, M. (2011), "Chapter 10 Circular Causation Relations Using Malaysian Data on Money and Real GDP", Baltagi, B.H., Sadka, E. and Alam Choudhury, M. (Ed.) Contributions to Economic Analysis (Contributions to Economic Analysis, Vol. 291), Emerald Group Publishing Limited, Leeds, pp. 205-218. https://doi.org/10.1108/S0573-8555(2011)0000291020