Journal of Islamic Monetary Economics and Finance
Vol. 4 No. 1 (2018)

THEORETICAL IMPACT OF ENHANCED MUSHARAKAH MUTANAQISAH HOME FINANCING ON REAL ESTATE PRICES

Asadov, Alam I. (Unknown)
Ibrahim, Mansor H. (Unknown)

Article Info

Publish Date
28 Aug 2018

Abstract

This paper theoretically analyzes two alternative modes of home financing. The first mode is the conventional housing loan and the other is Enhanced Musharakah Mutanaqisah (EMM) home financing. Our results reveal the EMM based setting is superior to the conventional housing loans in at least two aspects. These are the prevention of house price inflation in all phases of economic business cycle and the smoothening of real estate cycles. This means that, under the EMM, the risk of real estate bubble formation is subdued, which should prove to be welfare improving.

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Journal Info
Journal of Islamic Monetary Economics and Finance
Website

Abbrev

JIMF

Publisher

Bank Indonesia

Subject

Economics, Econometrics & Finance

Description

JIMF is an international peer-reviewed and scientific journal which is published quarterly by Bank Indonesia Institute. JIMF is a type of scientific journal (e-journal) in Islamic economics, monetary, and finance. By involving a large research communiy in an innovative public peer-review process, ...