On the Design of Interest-free Instruments

Darrat, Ali F.; Ebrahim, Muhammed-Shahid

Abstract

The main purpose of this paper is to present a theoretical model of an alternative fund-raising scheme for Muslim governments which are restricted by religious regulations against 1ixed-inçrest debt financing techniques. The proposed instrument is developed using the principles of a partial equilibrium theory for risk neutral as well as risk averse investors, The paper concludes with theoretical and empirical discussions on the elficiency of the financial instrument proposed.

Citation

Darrat, A. F., & Ebrahim, M. (1996). On the Design of Interest-free Instruments

• Journal Article Type: Article
• Publication Date: 1996
• Deposit Date: Sep 25, 2014
• Journal: Majallat Jāmiʻat al-Malik ʻAbd al-ʻAzīz. al-Iqtiṣād al-Islāmī
• Volume: 8
• Issue: 1
• Pages: 53-61
• Public URL: https://durham-repository.worktribe.com/output/1420591
• Publisher URL: http://www.kau.edu.sa/AccessPage.aspx?Site_ID=320&lng=EN&SYS_ID=198