Research Institute of Hawzah and University; "Hawzah wa Dāneshgāh Research Institute"Journal of Iran's Economic Essays (JIEE)1735-330071420100923Capital Market Equilibrium in the Islamic EconomyCapital Market Equilibrium in the Islamic Economy935245FAAbbasAsariAssistant Professor of Tarbiyat Modares UniversityMohsenKhezriM. A. Student in Economics, University of Tarbiyat Modares UniversityAhmadRasooliM. A. Student in Economics, University of Tarbiyat Modares UniversityJournal Article20100531This paper by modeling the behavior of economic agents in an Islamic economy and<br />develop a general equilibrium model investigates the capital market equilibrium in<br />an Islamic Economy. Accordingly, have tried to determine the capital market<br />regulator variable, by determine the affecting factors on supply and demand of<br />capital in an economy without interest. According to result, in compared with an<br />economy with interest, that determined exogenous interest rates in the money market<br />is regulator for capital market, variable profit sharing ratio of families in the<br />productive partnership is earned as a capital market endogenous regulator variable in<br />an economy without interest. Also in this article, capital market equilibrium point,<br />maximum production point of producers is obtained, which means more investment<br />in an economy interest-free to the economy is with interest.This paper by modeling the behavior of economic agents in an Islamic economy and<br />develop a general equilibrium model investigates the capital market equilibrium in<br />an Islamic Economy. Accordingly, have tried to determine the capital market<br />regulator variable, by determine the affecting factors on supply and demand of<br />capital in an economy without interest. According to result, in compared with an<br />economy with interest, that determined exogenous interest rates in the money market<br />is regulator for capital market, variable profit sharing ratio of families in the<br />productive partnership is earned as a capital market endogenous regulator variable in<br />an economy without interest. Also in this article, capital market equilibrium point,<br />maximum production point of producers is obtained, which means more investment<br />in an economy interest-free to the economy is with interest.https://iee.rihu.ac.ir/article_245_b0ff5922689130141b1d5fd08d7d3462.pdfResearch Institute of Hawzah and University; "Hawzah wa Dāneshgāh Research Institute"Journal of Iran's Economic Essays (JIEE)1735-330071420100923Systemic Survey on Bank Profit Determination in IranSystemic Survey on Bank Profit Determination in Iran3767246FAMehdiRazaviProfessor of Economics, Shaid Beheshti UniversitySmaeilShamsiyanM. A. Student in Programming of Economic Systems, Shaid Beheshti UniversityJournal Article20100610This research aims to comprehensive recognition and study on Islamic banking, to<br />assign bank profit and its main factors. It is done by means of Interpretive Structural<br />Modeling (ISM) in order to propose a systemic analysis which is intended to be<br />complete and adopted to reality. The results of this research pose that there are some<br />important economic factors in practical pattern of Islamic banking. The mentioned<br />factors affect profit of deposits, they may interact with each other, then they get<br />reinforced or weakened while affecting the profit.This research aims to comprehensive recognition and study on Islamic banking, to<br />assign bank profit and its main factors. It is done by means of Interpretive Structural<br />Modeling (ISM) in order to propose a systemic analysis which is intended to be<br />complete and adopted to reality. The results of this research pose that there are some<br />important economic factors in practical pattern of Islamic banking. The mentioned<br />factors affect profit of deposits, they may interact with each other, then they get<br />reinforced or weakened while affecting the profit.https://iee.rihu.ac.ir/article_246_95a839be8a10c89dc41c385f3b7976dd.pdfResearch Institute of Hawzah and University; "Hawzah wa Dāneshgāh Research Institute"Journal of Iran's Economic Essays (JIEE)1735-330071420100923Economic Crimes, Income Inequality and Economic Development: The Case of Iran (1983-2006)Economic Crimes, Income Inequality and Economic Development: The Case of Iran (1983-2006)6992247FAAli HusseinSamadiAssistant Professor of Economics, Department of Economics, University of Shiraz, Shiraz, IranJavadAmarehMaster of Economics, Graduated from Shahid Chamran University of AhwazJournal Article20110314Main target of this article is investigating the causality, long-run and short-run<br />relationships between economic crimes, income inequality, poverty and economic<br />development for Iranian economy in 1983-2006 period. The results of Engel-<br />Granger, Johansen-Juselius, and Pesaran, et al. (2001) cointegration tests and also<br />Toda-Yamamoto causality test shows that:<br />1. There is no long-run relationships between poverty, development, income<br />inequality and economic crimes.<br />2. Results of Toda-Yamamoto causality test shows a bilateral causality between<br />poverty and economic crimes. Also, there is no causality between income inequality<br />and economic crimes.<br />The article recommendation is to faster the economic growth, and adapting pro-poor<br />policies for decreasing economic crimes.Main target of this article is investigating the causality, long-run and short-run<br />relationships between economic crimes, income inequality, poverty and economic<br />development for Iranian economy in 1983-2006 period. The results of Engel-<br />Granger, Johansen-Juselius, and Pesaran, et al. (2001) cointegration tests and also<br />Toda-Yamamoto causality test shows that:<br />1. There is no long-run relationships between poverty, development, income<br />inequality and economic crimes.<br />2. Results of Toda-Yamamoto causality test shows a bilateral causality between<br />poverty and economic crimes. Also, there is no causality between income inequality<br />and economic crimes.<br />The article recommendation is to faster the economic growth, and adapting pro-poor<br />policies for decreasing economic crimes.https://iee.rihu.ac.ir/article_247_09a27a6a099e853c0c631a568b61064f.pdfResearch Institute of Hawzah and University; "Hawzah wa Dāneshgāh Research Institute"Journal of Iran's Economic Essays (JIEE)1735-330071420100923Credit Risk Rating Model of Developing Countries by Independent Component AnalysisCredit Risk Rating Model of Developing Countries by Independent Component Analysis93115248FAMohammad TaghiGilak HakimabadiAssistant Professor of Economics, University of Mazandaran, Babolsar, Iran, Department of EconomicsAhmadJafari SamimiProfessors of Economics, University of Mazandaran, Babolsar, Iran, Department of EconomicsMasihMolanaM. A. Student in Economics, University of Mazandaran, Baoblsar, IranJournal Article20100807The main purpose of the current paper is to introduce a model to rate credit risk in<br />developing countries. Since there is no comprehensive theory for evaluation of<br />country credit risk and no complete transparency on the process of rating credit risk<br />by involved institutions then the first aim of the research is to find variables which<br />have most impact on country risk. To gain this purpose, twenty eight financial and<br />economical variables having most impact on rating country risk, based on relevant<br />theories and previous researches, will be selected. Then by applying "Independent<br />Component Analysis (ICA)" we could find nine variables out of twenty eight ones<br />that have most influence on rating country risk between 2002-2006. Results shows<br />that ratio of gross fixed investment to the GDP and percentage of total external debt<br />to the export have positive and negative effect on countries rating. Finally estimation<br />of the model shows this model has the ability to justify 96% of the variance in<br />country credit rating (based on the results provided by Fitch and S&P institutes).The main purpose of the current paper is to introduce a model to rate credit risk in<br />developing countries. Since there is no comprehensive theory for evaluation of<br />country credit risk and no complete transparency on the process of rating credit risk<br />by involved institutions then the first aim of the research is to find variables which<br />have most impact on country risk. To gain this purpose, twenty eight financial and<br />economical variables having most impact on rating country risk, based on relevant<br />theories and previous researches, will be selected. Then by applying "Independent<br />Component Analysis (ICA)" we could find nine variables out of twenty eight ones<br />that have most influence on rating country risk between 2002-2006. Results shows<br />that ratio of gross fixed investment to the GDP and percentage of total external debt<br />to the export have positive and negative effect on countries rating. Finally estimation<br />of the model shows this model has the ability to justify 96% of the variance in<br />country credit rating (based on the results provided by Fitch and S&P institutes).https://iee.rihu.ac.ir/article_248_fbf77b5ea1c284487f08bb8f33d38e50.pdfResearch Institute of Hawzah and University; "Hawzah wa Dāneshgāh Research Institute"Journal of Iran's Economic Essays (JIEE)1735-330071420100923Pension System Reform and it's Effects on Income Distribution, Poverty and Capital Accumulation: An Application For IranPension System Reform and it's Effects on Income Distribution, Poverty and Capital Accumulation: An Application For Iran117151249FAMajidDashtban FarojiPh.D. Student of Economics at Isfahan UniversitySaeedSamadiAssistant Professor of Economics at Isfahan UniversityRahimDallali IsfahaniAssociat Professor of Economics at Isfahan UniversityMahanoshAbdollahe MilaniAssistant Professor of Economics at Allameh Tabatabai UniversityJournal Article20100613Lack of data, income or solely precautionary considerations have caused people act<br />differently in their life cycle rather than what is expected of them. These differences are<br />mainly related to educational levels, production capacity and their differential pension<br />conditions. The assumption is that people have planned for their old age through<br />different forms of savings at earlier stages of life. Since this may not happen, the aim of<br />social security programs is to solve retirees problem that cannot compensate their income<br />deficit. This paper analyses and simulates Iran’s Pension System by using an overlapping<br />generations model. Thus, we study the effects of transition from the Pay-As-You-Go<br />Pension to the Fully Funded Pension System on capital accumulation, income<br />distribution and poverty. Simulation results show that in addition to higher levels of<br />lifetime utility, The Fully Funded Pension System compared to Pay-as-you-go provides a<br />higher physical capital accumulation for the economy. The transition to Fully Funded<br />System creates two different and opposite effects on poor people. On one hand, poor<br />people economic conditions deteriorate and on the other hand, since they receive returns<br />on their savings, they have an opportunity to be placed in a better situation, because the<br />Fully Funded System enable them to have an access to financial institutions.Lack of data, income or solely precautionary considerations have caused people act<br />differently in their life cycle rather than what is expected of them. These differences are<br />mainly related to educational levels, production capacity and their differential pension<br />conditions. The assumption is that people have planned for their old age through<br />different forms of savings at earlier stages of life. Since this may not happen, the aim of<br />social security programs is to solve retirees problem that cannot compensate their income<br />deficit. This paper analyses and simulates Iran’s Pension System by using an overlapping<br />generations model. Thus, we study the effects of transition from the Pay-As-You-Go<br />Pension to the Fully Funded Pension System on capital accumulation, income<br />distribution and poverty. Simulation results show that in addition to higher levels of<br />lifetime utility, The Fully Funded Pension System compared to Pay-as-you-go provides a<br />higher physical capital accumulation for the economy. The transition to Fully Funded<br />System creates two different and opposite effects on poor people. On one hand, poor<br />people economic conditions deteriorate and on the other hand, since they receive returns<br />on their savings, they have an opportunity to be placed in a better situation, because the<br />Fully Funded System enable them to have an access to financial institutions.https://iee.rihu.ac.ir/article_249_7b19e772957a3a2cbeefa5396c3ee607.pdfResearch Institute of Hawzah and University; "Hawzah wa Dāneshgāh Research Institute"Journal of Iran's Economic Essays (JIEE)1735-330071420100923Distribution of Income Earned from Production ProcessDistribution of Income Earned from Production Process153169250FAMohammad HusseinKaramiFaculty Member of The Research Institute of Seminary and University, Department of EconomicsJournal Article20100409The present essay deals with-among different types of distribution - "the distribution<br />of product among production factors" and suggests two important ideas:<br />First, it is not possible to claim with certainty that in a perfect competitive market,<br />final output of a factor shows its added value and participation rate in production. It is<br />true if some presuppositions being considered i.e.; not only getting assured that<br />production function is homogenous but also not a specific rate of factors influences the<br />added value. Accepting a fixed output, a product is earned from the added value of all<br />factors, but separating the added value of each factor is not possible by final output.<br />Second, in Muslim scholar's point of view, justice necessitates that the owners of<br />production factors demand their share to the extend they participate in the<br />production of a product, the role they play in it and the rate of added value they<br />create. It can't be claimed that their added value is equal with their final output.The present essay deals with-among different types of distribution - "the distribution<br />of product among production factors" and suggests two important ideas:<br />First, it is not possible to claim with certainty that in a perfect competitive market,<br />final output of a factor shows its added value and participation rate in production. It is<br />true if some presuppositions being considered i.e.; not only getting assured that<br />production function is homogenous but also not a specific rate of factors influences the<br />added value. Accepting a fixed output, a product is earned from the added value of all<br />factors, but separating the added value of each factor is not possible by final output.<br />Second, in Muslim scholar's point of view, justice necessitates that the owners of<br />production factors demand their share to the extend they participate in the<br />production of a product, the role they play in it and the rate of added value they<br />create. It can't be claimed that their added value is equal with their final output.https://iee.rihu.ac.ir/article_250_2640587791c624d5ea13caac5929814b.pdfResearch Institute of Hawzah and University; "Hawzah wa Dāneshgāh Research Institute"Journal of Iran's Economic Essays (JIEE)1735-330071420100923Application Investigation of Genetic- Nelder-Mead Hybridized-Heuristic Algorithm in Portfolio OptimizationApplication Investigation of Genetic- Nelder-Mead Hybridized-Heuristic Algorithm in Portfolio Optimization171204251FAMohammad AliMolaeiAssistant Professor, Department of Industrial Engineering and Management, Shahrood University of
Technology, Shahrood, IranArashTalebiMBA Student, Department of Industrial Engineering and Management, Shahrood University of
Technology, Shahrood, Iran, Corresponding AuthorJournal Article20100526Markowitz portfolio model still is the dominant approach in the investment profession and<br />scientific approaches. Contrary to the growing use of portfolios and in spite of the rich<br />literature on the subject, there are some problems and unanswered questions. How to<br />select the stocks of a portfolio is a matter of controversy; besides, the approach to<br />optimize the selected potfolio is a sub-group of this controversy. The aim of this work is<br />to be a useful instrument for helping finance practitioners and researchers with the<br />portfolio selection problem. While investigating major methods ever used in optimization,<br />classics and heuristics, a hybridized algorithm, consisting of the combination of two<br />heuristic algorithms, is applied to the portfolio selection problem in this paper. Portfolios<br />are selected and optimized in Tehran stock exchange for the stocks of top 35 companies<br />out of top 50 companies. The results indicate that the hybridized algorithm is adaptable to<br />the portfolio selection problem, and in contrast to optimization via genetic algorithm, the<br />hybridized algorithm holds a better convergence speed and owns a more reasonable riskreturn<br />performance. The research findings also show that in a comparison between the<br />hybrid-based constructed portfolios, although the convergence speed and degree of<br />diversification for the monthly selected portfolio outperforms the other one, the annual<br />selected portfolio holds a better performance from risk-return point of view.Markowitz portfolio model still is the dominant approach in the investment profession and<br />scientific approaches. Contrary to the growing use of portfolios and in spite of the rich<br />literature on the subject, there are some problems and unanswered questions. How to<br />select the stocks of a portfolio is a matter of controversy; besides, the approach to<br />optimize the selected potfolio is a sub-group of this controversy. The aim of this work is<br />to be a useful instrument for helping finance practitioners and researchers with the<br />portfolio selection problem. While investigating major methods ever used in optimization,<br />classics and heuristics, a hybridized algorithm, consisting of the combination of two<br />heuristic algorithms, is applied to the portfolio selection problem in this paper. Portfolios<br />are selected and optimized in Tehran stock exchange for the stocks of top 35 companies<br />out of top 50 companies. The results indicate that the hybridized algorithm is adaptable to<br />the portfolio selection problem, and in contrast to optimization via genetic algorithm, the<br />hybridized algorithm holds a better convergence speed and owns a more reasonable riskreturn<br />performance. The research findings also show that in a comparison between the<br />hybrid-based constructed portfolios, although the convergence speed and degree of<br />diversification for the monthly selected portfolio outperforms the other one, the annual<br />selected portfolio holds a better performance from risk-return point of view.https://iee.rihu.ac.ir/article_251_15e935843663ec3e0c4d54c14e2f301a.pdf