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The arguments of this chapter that are set up against the prevailing Islamic economic and finance intellection and practice arise from the economic and methodological premises on behavior, markets, and institutional structure that together influence asset valuation. All these are bonded together to explain how methodology defines the domain of financial engineering in mainstream and Islamic perspectives. Mainstream financial engineering as a study of methods that stand upon the assumptions of behavior, markets, and institutions of the neo-classical vintage is critically examined. This is contrasted with the Islamic perspectives of the same issues that lay out an altogether different methodological worldview. Different forms of asset-valuation models emerge in these two cases. The Islamic premise of behavior, markets, and institutions is utilized against the backdrop of its most fundamental epistemology.

The main aim of this paper is to examine the effect of economic growth on worker mobility and the effect of this mobility on income distribution.

The paper develops an overlapping generation model with multiple categories of labor. In order to confirm the theoretical results and demonstrate that the model can be used for empirical analysis, an example and a simulation were presented.

The analysis demonstrates that, as capital stock increase, workers are mobilized up to better jobs, their income grows and income distribution becomes more equalized.

Endogenous technological improvement and population growth might also be added to the discussion, but at the price of a more complicated model. Discussion on these issues showed be left for future research.

The effect of tax policy can be easily added to the model and to the discussion.

This paper extended the overlapping generation model to include different types of individuals. The importance of the paper is in its ability to analyze the changes in the income of various categories of workers along the growth path of the economy.

The paper aims to theoretically and empirically investigate the impact on human capital investment decisions and income growth of lowered life expectancy as a result of HIV/AIDS and other diseases.

The theoretical model is a three‐period overlapping generations model where individuals go through three stages in their lives, namely, young, adult, and old. The model extends existing theoretical models by allowing the probability of premature death to differ for individuals at different life stages, and by allowing for stochastic technological advances. The empirical investigation focuses on the effect of HIV/AIDS on life expectancy and on the role of health in educational investments and growth. Potential endogeneity is addressed by using various strategies, such as controlling for country‐specific time‐invariant unobservables and by using the male‐circumcision rate as an instrumental variable for HIV/AIDS prevalence.

The paper shows theoretically that an increased probability of premature death leads to less investment in human capital, and consequently slower growth. Empirically, the paper finds that HIV/AIDS has resulted in a substantial decline in life expectancy in African countries and these falling life expectancies are indeed associated with lower educational attainment and slower economic growth world wide.

The theoretical and empirical findings reveal a causal link flowing from health to growth, which has been largely overlooked by the existing literature. The main implication is that health investments that decrease the incidence of diseases like HIV/AIDS resulting in increases in life expectancy through their complementarity with human capital investments lead to long run growth.