On the pareto-optimality of futures contracts over Islamic forward contracts: implications for the emerging Muslim economies.
(2005)
Journal Article
Ebrahim, M., & Rahman, S. (2005). On the pareto-optimality of futures contracts over Islamic forward contracts: implications for the emerging Muslim economies. Journal of Economic Behavior and Organization, 56(2), 273-295. https://doi.org/10.1016/j.jebo.2003.09.007
A general equilibrium approach is used to demonstrate that: (i) futures contracting (on Islamically permissible commodities) is pareto-optimal over the Islamic forward contract of Bai’ Salam; and (ii) both forms of contracting constitute a quasi-equi... Read More about On the pareto-optimality of futures contracts over Islamic forward contracts: implications for the emerging Muslim economies..