Optimal Profit-Sharing Contracts and Investment in an

Optimal Profit-Sharing Contracts and Investment in an Interest-Free Islamic Economy Interest-Free Islamic Economy Nadeem Ul Haque Abbas Mirakhor November 5, 1986 Abstract:      In an Islamic financial system, interest is replaced by a profit-sharing system in which risks are shared between lenders and borrowers. Concerns have been expressed that in such a system

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