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To purchase or authenticate to the full-text of this article, please visit this link: http://dx.doi.org/10.1111/j.1467-6435.2008.00392.x Byline: Erhun Kula (1) Abstract: SUMMARY This paper considers whether the modern interest rate theory is in conflict with Islamic values. Unfortunately, the issue is not sufficiently debated in economic and cognate literature and thus a mist surrounds the Islamic concept of interest (riba) and its use in the Moslem world that contains about 1.3 billion people and hundreds of billions of dollars of surplus funds. A substantial part of this money has not been made available to the commercial banking system as Islamists in particular keep their savings in the form of gold, precious stones or durable foreign currency, in residential or other safe places, believing that earning interest on savings is against the principles of Islam. This attitude by creating a shortage of funds for investment projects is hampering the economic development of many Moslem countries where standards of living are generally low. The finding of the paper is that only one component part of the time preference rate, namely pure time discount, may be objectionable from the Islamic as well as from secular viewpoints; the rest does not appear to be against Muslim ethics. However, a truly competitive financial market structure is likely to wipe away the excessive pure time discount rate leaving the market interest rate free from any objectionable parameter. Author Affiliation: (1)Bahcesehir University, Istanbul

Purpose -- The purpose of this paper is to estimate survey-based values of the elasticity of marginal social valuation of income, an important welfare parameter in cost-benefit analysis. Design/methodology/approach -- A model relating equity welfare weights to income is developed, and iso-elasticity of marginal valuation of income is tested using survey data obtained from a sample of Turkish politicians who are instrumental in policy making. Findings -- Based on the survey feedback, formal statistical testing indicates that Turkish politicians, regardless of party allegiance, reveal preferences consistent with an iso-elastic marginal social valuation of income. The estimated value of the elasticity measure is close to unity for each of the political parties. Originality/value -- The originality of the paper is in terms of the survey method used to obtain from Turkish politicians estimates of the marginal social valuation of income. This welfare parameter is needed in the calculation of both social discount rates and welfare weights. The paper will be of interest to academics in the field of welfare economics as well as to practitioners involved in the appraisal of social projects and policies. Paper type Research paper [ABSTRACT FROM AUTHOR]

Despite well advanced negotiations in the European Union regarding the full Turkish membership recently some powerful European politicians as well as others have expressed reservations about it which came as a shock to many in Europe and beyond. Turkey started negotiations with the EU in 1959 (has been the only non-member country with a customs union) and is still waiting to become a full member. The main argument of the opposing politicians appears to be that Turkey is not really a European country. This paper looks at the history of Europe and Turkey and concludes that the two are inseparably linked. Some politicians see the European Union as a Christian club and thus the spiritual disposition of the Turks appears to be the real problem for them. [ABSTRACT FROM AUTHOR]

This paper estimates a social discount rate in India for the purpose of economic evaluation of investment projects, such as those aimed at improving the nation's agricultural performance. The component parameters of this rate are: the growth rate of per capita consumption in real terms, the elasticity of the marginal utility of consumption and the mortality-based discount rate. Based upon time series data, the overall figure turns out to be 5.2 percent. This, it is contended, is reasonable and may be used in cost benefit analysis in that country. [ABSTRACT FROM AUTHOR]

The article discusses various reports published within the issue, including one by Sahin Alpay on the development of democracy in Turkey, one by Arus Yumul on the Turkish cultural identity problem, and another by Veysel Ulusoy and Necip Cakir on the benefits of the European Union (EU) customs union on trade specialisation and labor market improvement.