This paper illustrates on a simple model of production economy with constant returns the incoherence of the partial competitive equilibrium analysis. The conflict between the Marshallian cross and the general equilibrium, which survives under many proposed restrictions of our economic domain,...

This paper argues that scarcity is not the fundamental economic problem, but rather distribution is. It also shows that economic growth will not solve our economic problem. Islam offers a radically different perspective on human economic problems and how to solve them. These are exposited in the...

The hypothesis of structural stability that the regression coefficients do not change over time is central to all applications of linear regression models. It is rather surprising that existing theory as well as practice focuses on testing for structural change under homoskedasticity – that...

Numerous crises involving finance, inequality, environment have shown that current economic theories lack the capability of addressing or even formulating the problems we face collectively as human beings. There are many calls for changing the syllabus of economics to make it more relevant. This...

Analytic evaluation of heteroskedasticity consistent covariance matrix estimates (HCCME) is difficult because of the complexity of the formulae currently available. We obtain new analytic formulae for the bias of a class of estimators of the covariance matrix of OLS in a standard linear...

Econometric Methodology is based on logical positivist principles. Since logical positivism has collapsed, it is necessary to re-think these foundations. We show that positivist methodology has led econometricians to a meaningless search for patterns in the data. An alternative methodology which...

The term “science” represents a claim to universality, but modern social science is based on lessons from European historical experience. Why, then, does it claim to have universal application? We suggest that Weber’s dictum that social science should be value free led to the concealment...

We argue that ways of thinking about poverty changed dramatically due to the Great Transformation in Europe which created a market society. These ways spread to the rest of world due to the colonization and global conquest of Europe. The market society requires a labor market which de-humanizes...

Massive amounts of confusion exists regarding the definition of Islamic Economics. This has blocked progress in terms of the development of the discipline, since there is no agreement on what its proper subject matter and methodology is. This paper shows that the confusion arises because of our...