The World Bank enjoys copyright under protocol 2 of the Universal Copyright Convention. This mate... more The World Bank enjoys copyright under protocol 2 of the Universal Copyright Convention. This material may nonetheless be copied for research, educational or scholarly purposes only in the member countries of The World Bank. Material in this series is subject to revision. The ...
ISRA International Journal of Islamic Finance, 2020
Purpose This study aims to comparatively analyze the systematic, idiosyncratic and downside risk ... more Purpose This study aims to comparatively analyze the systematic, idiosyncratic and downside risk exposure of both Islamic and conventional funds in Pakistan to see which of the funds has higher risk exposure. Design/methodology/approach The study analyzes different types of risks involved in both Islamic and conventional funds for the period from 2009 to 2016 by using different risk measures. For systematic and idiosyncratic risk single factor CAPM and multifactor models such as Fama French three factors model and Carhart four factors model are used. For downside risk analysis different measures such as downside beta, relative beta, value at risk and expected short fall are used. Findings The study finds that Islamic funds have lower risk exposure (including total, systematic, idiosyncratic and downside risk) compared with their conventional counterparts in most of the sample years, and hence, making them appear more attractive for investment especially for Sharīʿah-compliant invest...
This study develops a theoretical a model to examine the impact of predation on aggregate output ... more This study develops a theoretical a model to examine the impact of predation on aggregate output and aggregate consumption. Using game theoretic framework we show that predation, reduces aggregate output and per capita consumption. Predation occurs when some agents enjoy comparative advantage in predation. Given predation under comparative advantage of some agents, a larger part of the aggregate output accrues to the predators. We also demonstrate that given inequality of endowments, the poorly endowed enjoys an incentive to predate. The payoff of the well endowed from production and predation is the same. Therefore the well endowed has no incentive to predate. If the well endowed still predates this would be owed to his comparative advantage in predation rather than the inequality per se. Large endowments are only one of the numerous sources that afford such comparative advantage. Good institutions like rule of law and effective government tame this comparative advantage. It is due...
The 7th National Finance Commission (NFC) Award has seemingly put an end to the deadlock over rev... more The 7th National Finance Commission (NFC) Award has seemingly put an end to the deadlock over revenue distribution among the constituents of the federation in Pakistan. This paper argues that though the 7th NFC Award’s use of multiple indicator criteria for the distribution of resources is a step forward in the right direction, the distribution design still falls short on various counts. For example, the weight of 82 percent for the population share is on the higher side whereas the demographic structure of the population, an important indicator of the expenditure needs, does not figure up in the distribution design. Also, the basis of weights assigned to the four elements of the revenue distribution criteria is unknown and no rigorous exercise seems to have been undertaken to determine these weights. Similarly, matching grants, which are a key element of the distribution design elsewhere, are altogether absent in Pakistan. Furthermore, provinces still rely on large transfers from t...
The World Bank enjoys copyright under protocol 2 of the Universal Copyright Convention. This mate... more The World Bank enjoys copyright under protocol 2 of the Universal Copyright Convention. This material may nonetheless be copied for research, educational or scholarly purposes only in the member countries of The World Bank. Material in this series is subject to revision. The ...
ISRA International Journal of Islamic Finance, 2020
Purpose This study aims to comparatively analyze the systematic, idiosyncratic and downside risk ... more Purpose This study aims to comparatively analyze the systematic, idiosyncratic and downside risk exposure of both Islamic and conventional funds in Pakistan to see which of the funds has higher risk exposure. Design/methodology/approach The study analyzes different types of risks involved in both Islamic and conventional funds for the period from 2009 to 2016 by using different risk measures. For systematic and idiosyncratic risk single factor CAPM and multifactor models such as Fama French three factors model and Carhart four factors model are used. For downside risk analysis different measures such as downside beta, relative beta, value at risk and expected short fall are used. Findings The study finds that Islamic funds have lower risk exposure (including total, systematic, idiosyncratic and downside risk) compared with their conventional counterparts in most of the sample years, and hence, making them appear more attractive for investment especially for Sharīʿah-compliant invest...
This study develops a theoretical a model to examine the impact of predation on aggregate output ... more This study develops a theoretical a model to examine the impact of predation on aggregate output and aggregate consumption. Using game theoretic framework we show that predation, reduces aggregate output and per capita consumption. Predation occurs when some agents enjoy comparative advantage in predation. Given predation under comparative advantage of some agents, a larger part of the aggregate output accrues to the predators. We also demonstrate that given inequality of endowments, the poorly endowed enjoys an incentive to predate. The payoff of the well endowed from production and predation is the same. Therefore the well endowed has no incentive to predate. If the well endowed still predates this would be owed to his comparative advantage in predation rather than the inequality per se. Large endowments are only one of the numerous sources that afford such comparative advantage. Good institutions like rule of law and effective government tame this comparative advantage. It is due...
The 7th National Finance Commission (NFC) Award has seemingly put an end to the deadlock over rev... more The 7th National Finance Commission (NFC) Award has seemingly put an end to the deadlock over revenue distribution among the constituents of the federation in Pakistan. This paper argues that though the 7th NFC Award’s use of multiple indicator criteria for the distribution of resources is a step forward in the right direction, the distribution design still falls short on various counts. For example, the weight of 82 percent for the population share is on the higher side whereas the demographic structure of the population, an important indicator of the expenditure needs, does not figure up in the distribution design. Also, the basis of weights assigned to the four elements of the revenue distribution criteria is unknown and no rigorous exercise seems to have been undertaken to determine these weights. Similarly, matching grants, which are a key element of the distribution design elsewhere, are altogether absent in Pakistan. Furthermore, provinces still rely on large transfers from t...
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Papers by Idrees Khawaja