Genetic diversity and its value: conservation genetics meets economicsJournal articleNoël Bonneuil and Raouf Boucekkine, Conservation Genetics Resources, Volume 12, Issue 1, pp. 141-151, 2020

Does drawing economic benefit from nature impinge on conservation? This has been a subject of controversy in the literature. The article presents a management method to overcome this possible dilemma, and reconcile conservation biology with economics. It is based on recent advances in the mathematical theory of dynamic systems under viability constraints. In the case of a one-locus two-allele plant coexisting with a one-locus two-allele parasite, the method provides a rule for deciding when and to what extent the resistant or the susceptible strain should be cultivated, in the uncertain time-varying presence of the parasite. This is useful for preventing the fixation of the susceptible allele - and thereby limiting the plant's vulnerability in the medium term, should the parasite reappear. The method thus provides an aid to decision for economic and ecology-friendly profitability.

Geographic environmental Kuznets curves: the optimal growth linear-quadratic caseJournal articleRaouf Boucekkine, Giorgio Fabbri, Salvatore Federico and Fausto Gozzi, Mathematical Modelling of Natural Phenomena, Volume 14, Issue 1, pp. Art105-18p, 2019

We solve a linear-quadratic model of a spatio-temporal economy using a polluting one-input technology. Space is continuous and heterogenous: locations differ in productivity, nature self-cleaning technology and environmental awareness. The unique link between locations is transboundary pollution which is modelled as a PDE diffusion equation. The spatio-temporal functional is quadratic in local consumption and linear in pollution. Using a dynamic programming method adapted to our infinite dimensional setting, we solve the associated optimal control problem in closed-form and identify the asymptotic (optimal) spatial distribution of pollution. We show that optimal emissions will decrease at given location if and only if local productivity is larger than a threshold which depends both on the local pollution absorption capacity and environmental awareness. Furthermore, we numerically explore the relationship between the spatial optimal distributions of production and (asymptotic) pollution in order to uncover possible (geographic) environmental Kuznets curve cases.

Mathematical Modelling of Natural Phenomena Economics and the environment: distributed optimal control modelsBookEmmanuelle Augeraud-Veron, Raouf Boucekkine and Vladimir Veliov (Eds.), 2019, Volume 14, 2019


Distributed optimal control models in environmental economics: a reviewJournal articleEmmanuelle Augeraud-Veron, Raouf Boucekkine and Vladimir M. Veliov, Mathematical Modelling of Natural Phenomena, Volume 14, Issue 1, pp. Art106-14p, 2019

We review the most recent advances in distributed optimal control applied to Environmental Economics, covering in particular problems where the state dynamics are governed by partial differential equations (PDEs). This is a quite fresh application area of distributed optimal control, which has already suggested several new mathematical research lines due to the specificities of the Environmental Economics problems involved. We enhance the latter through a survey of the variety of themes and associated mathematical structures beared by this literature. We also provide a quick tour of the existing tools in the theory of distributed optimal control that have been applied so far in Environmental Economics.

A Pedagogical Note on Risk Sharing Versus Instability in International Financial Integration: When Obstfeld Meets StiglitzJournal articleRaouf Boucekkine and Benteng Zou, Open Economies Review, Volume 30, Issue 1, pp. 179-190, 2019

The pure risk sharing mechanism implies that financial liberalization is growth enhancing for all countries as the world portfolio shifts from safe low-yield capital to riskier high-yield capital. This result is typically obtained under the assumption that the volatilities for risky assets prevailing under autarky are not altered after liberalization. We relax this assumption within a simple two-country model of intertemporal portfolio choices. By doing so, we put together the risk sharing effect and a well-defined instability effect. We identify the conditions under which liberalization may cause a drop in growth. These conditions combine the typical threshold conditions outlined in the literature, which concern the deep characteristics of the economies, and size conditions on the instability effect induced by liberalization.

Growth and agglomeration in the heterogeneous space: a generalized AK approachJournal articleRaouf Boucekkine, Giorgio Fabbri, Salvatore Federico and Fausto Gozzi, Journal of Economic Geography, Volume 19, Issue 6, pp. 1287-1318, 2019

We provide an optimal growth spatio-temporal setting with capital accumulation and diffusion across space to study the link between economic growth triggered by capital spatio-temporal dynamics and agglomeration across space. The technology is AK, K being broad capital. The social welfare function is Benthamite. In sharp contrast to the related literature, which considers homogeneous space, we derive optimal location outcomes for any given space distributions for technology and population. Both the transitional spatio-temporal dynamics and the asymptotic spatial distributions are computed in closed form. Concerning the latter, we find, among other results, that: (i) due to inequality aversion, the consumption per capital distribution is much flatter than the distribution of capital per capita; (ii) endogenous spillovers inherent in capital spatio-temporal dynamics occur as capital distribution is much less concentrated than the (pre-specified) technological distribution; (iii) the distance to the center (or to the core) is an essential determinant of the shapes of the asymptotic distributions, that is relative location matters.

A Lipsetian theory of voluntary power handoverJournal articleRaouf Boucekkine, Paolo G. Piacquadio and Fabien Prieur, Journal of Economic Behavior & Organization, Volume 168, Issue C, pp. 269-291, 2019

We consider an autocracy where the ruling elite control both the resource wealth and education policies. Education prompts economic growth and enriches the budget of the elite. However, education also increases the “awareness of citizens” – capturing their reluctance to accept a dictatorship and their labor market aspirations – and forces the elite to expand redistribution or handover the power. A power handover leads to a more democratic regime, where the elite retains (at least partially) its economic power. This trade-off is the backbone of our Lipsetian theory of voluntary power handover. This theory provides new insights on the positive relationship between economic development, education, and democratization, and on the negative relationship between inequality and democratization. Finally, we revisit the resources-curse hypothesis within our setting.

Short-run pain, long-run gain: the conditional welfare gains from international financial integrationJournal articleRaouf Boucekkine, Giorgio Fabbri and Patrick A. Pintus, Economic Theory, Volume 65, Issue 2, pp. 329-360, 2018

This paper aims at clarifying the analytical conditions under which financial globalization originates welfare gains in a simple endogenous growth setting. We focus on an open-economy AK model in which the capital-deepening effect of financial globalization boosts growth in a in permanent but entails an entry cost in order to access international credit markets. We show that constrained borrowing triggers substantial welfare gains, even at small levels of international financial integration, provided that the autarkic growth rate is larger than the world interest rate. Such conditional welfare benefits boosted by stronger growth—long-run gain—arise in our preferred model without investment commitment and they range, relative to autarky, from about 2% in middle-income countries to about 13% in OECD-type countries under international financial integration. Sizeable benefits emerge despite the fact that consumption initially falls—short-run pain—which is, however, shown not to dwarf positive growth changes.

IntroductionBook chapterRabah Arezki, Raouf Boucekkine, Jeffrey Frankel, Mohammed Laksaci and Rick van der Ploeg, Rabah Arezki and Et al. (Eds.), 2018-04, pp. 9-19, CEPR Press, 2018


Rethinking the macroeconomics of resource-rich countriesBookRabah Arezki, Raouf Boucekkine, Jeffrey Frankel, Mohammed Laksaci and Rick van der Ploeg (Eds.), 2018-04, CEPR Press, 2018

After years of high commodity prices, a new era of lower ones, especially for oil, seems likely to persist. This will be challenging for resource-rich countries, which must cope with the decline in income that accompanies the lower prices and the potential widening of internal and external imbalances. This column presents a new VOXEU eBook in which leading economists from academia and the public and private sector examine the shifting landscape in commodity markets and look at the exchange rate, monetary, and fiscal options policymakers have, as well as the role of finance, including sovereign wealth funds, and diversification.