Fifty years of mathematical growth theory: Classical topics and new trendsJournal articleEmmanuelle Augeraud-Veron, Raouf Boucekkine, Fausto Gozzi, Alain Venditti and Benteng Zou, Journal of Mathematical Economics, Volume 111, pp. 102966, 2024
On the distributional consequences of the knowledge economy and Artificial IntelligenceBook chapterRaouf Boucekkine, In: Social Justice in a Global Society, E. Chiappero-Martinetti (Eds.), 2021-11, pp. 85-112, Feltrinelli, 2021


Long-run stability of money demand and monetary policy: The case of AlgeriaJournal articleRaouf Boucekkine, Mohammed Laksaci and Mohamed Touati-Tliba, The Journal of Economic Asymmetries, Volume 24, pp. e00217, 2021

Since the start of the oil counter-shock in June 2014, Algeria has experienced unprecedented twin deficits. The excessive monetisation of the public deficit coupled with other deep anomalies in the economy of this country acutely calls for reconsideration of its monetary policy. To this end a prior study of the long-run stability of money demand is needed. We estimate the demand for money for monetary aggregates M1 and M2, and cash in Algeria over the period 1979–2019, and study its long-run stability. We show that the transaction motive is significant for all three aggregates, especially for the demand for cash, reflecting the weight of informal economy “practices”. The elasticity of the scale variable is very close to unity for M2 and M1, and even equal to unity for cash demand (1.006). The elasticity of inflation is also significant for all three aggregates, although its level is higher in the case of cash demand (−6.474). Despite the persistence of certain financial repression mechanisms, interest rate elasticity is significant for all three aggregates, but higher for M1 and cash. The same observation is made for elasticity of the exchange rate, reflecting the effect of monetary substitution, especially for M1 and cash. Finally, our study concludes that the demand for money in terms of M1 remains stable, the same observation being confirmed for the M2 aggregate. However, the demand for fiat currency proves not to be stable. The consequences for the optimal design of monetary policy in Algeria are clearly stated.

Control theory in infinite dimension for the optimal location of economic activity: The role of social welfare functionJournal articleRaouf Boucekkine, Giorgio Fabbri, Salvatore Federico and Fausto Gozzi, Pure and Applied Functional Analysis, Volume 6, Issue 5, pp. 871-888, 2021

In this paper, we consider an abstract optimal control problem with state constraint. The methodology relies on the employment of the classical dynamic programming tool considered in the infinite dimensional context. We are able to identify a closed-form solution to the induced Hamilton-Jacobi-Bellman (HJB) equation in infinite dimension and to prove a verification theorem, also providing the optimal control in closed loop form. The abstract problem can be seen an abstract formulation of a PDE optimal control problem and is motivated by an economic application in the context of continuous spatiotemporal growth models with capital di usion, where a social planner chooses the optimal location of economic activity across space by maximization of an utilitarian social welfare function. From the economic point of view, we generalize previous works by considering a continuum of social welfare functions ranging from Benthamite to Millian functions. We prove that the Benthamite case is the unique case for which the optimal stationary detrended consumption spatial distribution is uniform. Interestingly enough, we also find that as the social welfare function gets closer to the Millian case, the optimal spatiotemporal dynamics amplify the typical neoclassical dilution population size effect, even in the long-run.

Advances in growth and macroeconomic stabilityBookMathematical Social Sciences, Raouf Boucekkine, Thomas Seegmuller and Alain Venditti (Eds.), 2021-07, Volume 112, Number Suppl C, 166 pages, Elsevier, 2021
A theory of elite-biased democraciesJournal articleRaouf Boucekkine, Rodolphe Desbordes and Paolo Melindi-Ghidi, Mathematical Social Sciences, Volume 112, Issue Suppl C, pp. 159-166, 2021

Elite-biased democracies are those democracies in which former political incumbents and their allies coordinate to impose part of the autocratic institutional rules in the new political regime. We document that this type of democratic transition is much more prevalent than the emergence of pure (popular) democracies in which the majority decides the new institutional rules. We then develop a theoretical model explaining how an elite-biased democracy may arise in an initially autocratic country. To this end, we extend the benchmark political transition model of Acemoglu and Robinson (2005) along two essential directions. First, population is split into majority versus minority groups under the initial autocratic regime. Second, the minority is an insider as it benefits from a more favourable redistribution by the autocrat. We derive conditions under which elite-biased democracies emerge and characterise them, in particular with respect to pure democracies.

Advances in growth and macroeconomic dynamics: In memory of Carine NourryJournal articleRaouf Boucekkine, Thomas Seegmuller and Alain Venditti, Mathematical Social Sciences, Volume 112, Issue Suppl C, pp. 1-6, 2021

This paper is an introduction to the special issue of Mathematical Social Sciences on Advances in growth and macroeconomic dynamics in memory of Carine Nourry.

From firm to global-level pollution control: The case of transboundary pollutionJournal articleRaouf Boucekkine, Giorgio Fabbri, Salvatore Federico and Fausto Gozzi, European Journal of Operational Research, Volume 290, Issue 1, pp. 331-345, 2021

We study the joint determination of optimal investment and optimal depollution in a spatiotemporal framework where pollution is transboundary. Pollution is controlled at a global level. The regulator internalizes that: (i) production generates pollution, which is bad for the wellbeing of population, and that (ii) pollution flows across space driven by a diffusion process. We solve analytically for the optimal investment and depollution spatiotemporal paths and characterize the optimal long-term spatial distribution when relevant. We finally explore numerically the variety of optimal spatial distributions obtained using a core/periphery model where the core differs from the periphery either in terms of input productivity, depollution efficiency, environmental awareness or self-cleaning capacity of nature. We also compare the distributions with and without diffusion. Key aspects in the optimal policy of the regulator are the role of aversion to inequality, notably leading to smoothing consumption across locations, and the control of diffusive pollution adding another smoothing engine.

Journal of Mathematical Economics. Special issues on "The economics of epidemics and emerging diseases"BookRaouf Boucekkine, Shankha Chakraborty and Aditya Goenka (Eds.), 2021-03, Volume 93, 2021
The economics of epidemics and contagious diseases: An introductionJournal articleRaouf Boucekkine, Andrés Carvajal, Shankha Chakraborty and Aditya Goenka, Journal of Mathematical Economics, Volume 93, Issue SI, pp. 102498, 2021