Endowment (Waqf) is one of Islamic social security instrument that has proven successful in increasing the economic and strength Muslim community early development civilization to its peak Ottoman Turkish era, where it an institution plays a key role empowerment through micro endowment various fields, such as education, assets, land, gardens, buildings, up health. Contemporarily, post-pandemic ...

Asset forfeiture laws allow the seizure of assets used in the commission of a crime. This paper examines the impact of such laws on deterrence by incorporating the possibility of asset forfeiture into the standard economic model of crime. When punishment is by a fine that can be optimally chosen, forfeiture is never optimal because of the deadweight loss it imposes in the capital market. When t...

We establish several new findings on the relation between capital flow in commodity markets and asset returns. Capital flowing into commodity markets, as measured by high open-interest growth, predicts high commodity returns and low bond returns. Open-interest growth is a more powerful and robust predictor of commodity returns than other known predictors such as the short rate, the yield spread...

We study the consequences of indexing, i.e. commiting to invest in risky assets only via the market portfolio. We extend the canonical rational expectations model (Grossman and Stiglitz, 1980) to allow for multiple assets and endowment shocks, and show that indexing imposes a negative externality on other uninformed agents. More indexing makes informed trading on the market more profitable, whi...

These notes analyze the production of financial services in general equilibrium. 1 Real Economy 1.1 Households The finance industry provides credit as well as liquidity and payment services to households (and savers more generally). In addition, household debt has an important life-cycle component (i.e., mortgages). The model must therefore incorporate these features. To do so, I consider a set...

Nonperforming assets (NPA) reflect the risk factor of the concerned commercial bank. Some of these banks operate at a threshold point where further reduction of NPA is not possible without reducing loans and advances, a desirable output. Pursuing an additive slack based efficiency DEA model the potential rate of reduction of NPA is explored for 50 commercial banks operating on Indian soil.

The author presents a search-based model in which money coexists with equity shares on a risky aggregate endowment. Agents can use equity as a means of payment, so shocks to equity prices translate into aggregate liquidity shocks that disrupt the mechanism of exchange. The author characterizes a family of optimal monetary policies and finds that the resulting equity prices are independent of mo...

Endowment payouts have become an increasingly important component of universities’ revenues in recent decades. We study how universities respond to financial shocks to endowments and thus shed light on a number of existing models of endowment behavior. Endowments actively reduce payouts relative to their stated payout policies following negative, but not positive, shocks. This asymmetric behavi...

ONE OF THE MAIN PUZZLES in international finance is portfolio home bias: typical investors hold most of their wealth in domestic assets (despite the fact that international diversification permits a sizable reduction in risk). Serrat (2001) claims that the nontradable nature of many consumption goods explains home bias. He presents a model of a world with two countries that receive tradable and...

We show that cross-border financial flows arise when countries differ in their abilities to use assets as collateral. Financial integration is a way of sharing scarce collateral. The ability of one country to leverage and tranche assets provides attractive financial contracts to investors in the other country, and general equilibrium effects on prices create opportunities for investors in the f...