Spotlight on Our Faculty : Mahmoud El-Gamal
Mahmoud El-Gamal , Professor of Economics and Statistics , Chair in Islamic Economics , Finance , and Management
Research Interests : International Economics and Finance , Econometrics , Behavioral Economics , and Islamic Law and Finance
Mahmoud El-Gamal is a Professor of Economics and Statistics , a Baker Institute Rice Faculty Scholar , and holds the Chair in Islamic Economics , Finance , and Management at Rice . He served as chair of the economics department from 2008-11 and on Rice ’ s Faculty Senate from 2012-13 and 2018-21 . He served previously as associate editor for the Journal of Economic Dynamics and Control and for Macroeconomic Dynamics , and on the Middle East Advisory Group at the International Monetary Fund . Professor El-Gamal received his Ph . D . from Northwestern and has previously held posts at the U . S . Department of the Treasury , the University of Wisconsin at Madison , the International Monetary Fund , and California Institute of Technology .
How did you first become interested in economics ?
I had followed my brothers into engineering , but reading about problems of poverty and famine , even as edible grains were intentionally destroyed and farmers were paid to produce fewer crops , convinced me that the most pressing problems were ones of distribution rather than production . I thought that economics would provide the tools for finding solutions to these problems that were simultaneously humane and incentive compatible – so that richer nations and individuals would willingly provide sufficient help to the poor , and the poor would not disrupt the efficient production processes that enriched the wealthy . Although there have been some bright spots , I am sad to report that working genuinely to solve such problems has not been incentive compatible for most economists , myself included .
Can you give us a brief summary of your fields of research ?
I wrote my dissertation on chaotic dynamical systems , hoping to break from economists ’ obsession with the circular reasoning of equilibrium analysis . That led me to study how such dynamics can emerge in economies populated by agents who learn using optimal ( Bayesian ) or other methods . This , in turn , led me to study experimentally how humans update their beliefs in individual decision problems as well as strategic game interactions . After coming to Rice , I sought to apply my craft and insights to understanding the legal and economic evolution of my native Middle East , which has been shaped during my lifetime by Islam and petrodollars . I continue to study the complex dynamics of religion , ethics and economics , on the one hand , and their interactions with dynamics of geopolitics , energy and financial markets , on the other .
What are some of your favorite current research projects and what impact do you hope your research achieves ?
I admire colleagues who pursue impactful research , but I no longer belong to that branch of academia . I subscribe now to the ancient tradition of pursuing knowledge as its own reward . The two strands of my ongoing research are very critical of contemporary Muslim thought on law and economics , on the one hand , and the economic policies pursued by hydrocarbon-rich Arab countries and their labor-exporting neighbors , on the other . I am perfectly satisfied if this research has no immediate impact and will be happy but seek no acknowledgement if it helps future generations to avoid some tragic mistakes .
You served for a year as Provost at the American University in Cairo – what are your most memorable experiences ?
As John Waterbury , the former President of American University of Beirut , had said to encourage me to take the job at AUC , which is my alma mater , the two commencements were my most memorable experiences . They were the culminations of service to my colleagues and successive cohorts of students . I like to think in terms of flipping the traditional org-charts of universities and viewing them as trees : The shining fruits , flowers and leaves at the top are students and scholars ; chairs sit at the branches trying to tend to them ; deans sit at the roots trying to siphon nutrients from the soil to feed their departments ; and I as the provost was responsible for tilling the soil to direct resources to the roots of different trees . On commencement days , I could briefly revel in seeing the fruits of our labors .
What do you enjoy most about teaching at Rice ?
I was a very argumentative student , and I enjoy interacting with argumentative students who challenge me . There seem to be fewer students now who do this , but I am grateful for those who engage an argument for the sake of argument , which is the only path to illumination for student and teacher alike .
What are your favorite hobbies ? Reading , reading and reading .
For more information on Professor El-Gamal ’ s research projects , including current working papers and a C . V ., see the
Faculty Page on the Economics Department website .
6