A Conceptual Framework for Transitioning to an Authentic Sustainable World

Othmane Benmoussa

In this article, using the ESIMOP / PROMISE framework of Roberto Rigobon and systems thinking concepts, we propose a dynamic systems perspective, to raise questions about the processes of change that are required, on multiple scales.

Based on this way of thinking, the example of COVID-19 episode highlights more than ever the critical need to find a clever equilibrium between human activity (in its several forms) and the Earth’s ability to cope, giving due consideration to the resulting general implications.

Bank Capital and the Cost of Equity

Mohamed Belkhir, Ralph Chami, Sami Ben Naceur, Anis Samet

Using a sample of publicly listed banks from 62 developed and developing, including MENA, countries over the 1991-2017 period, we investigate the impact of capital on banks’ cost of equity. We report the highest median cost of equity in Lebanon with 25.1%. Consistent with the theoretical prediction that more equity in the capital mix leads to a fall in firms’ costs of equity, we find that better capitalised banks enjoy lower equity costs. Our baseline estimations indicate that a 1 percentage point increase in a bank’s equity-to-assets ratio lowers its cost of equity by about 18 basis points. Our results also suggest that the form of capital that investors value the most is sheer equity capital; other forms of capital, such as Tier 2 regulatory capital, are less (or not at all) valued by investors. Additionally, our main finding that capital has a negative effect on banks’ cost of equity holds in both developed and developing countries. The results of this paper provide the missing evidence in the debate on the effects of higher capital requirements on banks’ funding costs.

COVID-19 Policy Assessment Monitor: Mediterranean and Africa March – September 2020

Rym Ayadi, Giovanni Barci, Sara Ronco

Amidst the disrupting circumstances resulting from the global pandemic COVID-19, this new study provides a comprehensive overview of the evolution of the COVID-19 pandemic in the Mediterranean and Africa, policy and economic responses to curb it and to alleviate the socio-economic negative consequences.

Lead author of the study is the President of EMEA and Director of EMNES, Prof Rym Ayadi, with contributions from EMEA researchers Giovanni Barci and Sara Ronco.

The study provides the description of the EMEA COVID-19 Monitor Platform and the main findings from the monitoring implemented from the beginning of the pandemic till 24 September 2020.

The Platform is composed of different sections, following the three pillars proposed by EMEA in its first study on COVID-19 (Ayadi et al., 2020). After several months of observations, the study provides a preliminary assessment of the COVID-19 evolution, containment and de-containment measures and the socio-economic preparedness and policies adopted to mitigate the impact of the pandemic. The study is part of the EMEA policy research initiative on COVID-19 launched on March 18th, 2020.  The initiative provides up-to-date research on COVID-19 related topics, publishes studies, data and policy papers and organizes webinars to discuss the outcomes. It is led and coordinated by Prof. Rym Ayadi, President of EMEA and Director of EMNES.

Since events surrounding COVID-19 are unfolding at the time of writing, EMEA research team and EMNES researchers and fellows continue updating the data, policy developments and the economic and social consequences of the pandemic throughout the Mediterranean and Africa.

The updates are posted regularly on the EMEA platform.

EMEA COVID-19 Trackerhttps://research.euromed-economists.org/covid-19/

The Tracker collects automatically daily data from international institutions (e.g. WHO, OECD, IMF..) on the COVID-19 pandemic via a built-in algorithm.

EMEA COVID-19 Monitorhttps://research.euromed-economists.org/introduction/

The Monitor provides weekly assessments of the COVID-19 evolutions and EMEA analysis on the topic.


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