Mohamad Lutfi HAMMOUR


  1. Bachelor

    (1985) Philosophy, Stanford University.

  2. Master

    (1985) MSc Industrial Engineering, Stanford University.

  3. PhD

    (1989) Economics, Massachusetts Institute of Technology.

Short Biography

Professor Mohamad Hammour is an academic economist as well as a practitioner of participation finance.

As an academic economist, Dr. Hammour has served as: a member of the economics faculty at Columbia University and of the visiting faculty at the Massachusetts Institute of Technology in the United States; a Director of Research at the Centre National de la Recherche Scientifique in France; a Research Fellow at the Centre for Economic Policy Research in the United Kingdom; and a consultant to the World Bank. His research has been published in American Economic Review, Journal of Political Economy, Quarterly Journal of Economics, Review of Economic Studies, Journal of Development Economics, and other scholarly publications.

As a practitioner, Dr. Hammour is the Founder and Chairman of Guidance Financial Group, an international financial services company dedicated to Shariah-compliant finance and investment. Businesses established by Guidance Financial Group include: Guidance Residential, the dominant Shariah-compliant housing finance provider in the United States; Dar Al Tamleek, a leading housing finance provider in Saudi Arabia; Bank Al Yousr, a new participation bank in Morocco established in partnership with Banque Populaire; Guidance Investments, a specialty investment company that has created a series of Shariah-compliant institutional funds focused on the private equity, real estate and equipment leasing sectors across the globe; and Shaza Hotels, a hotel management company established in partnership with Kempinski Hotels.

Dr. Hammour holds a B.A. in Philosophy and an M.S. in Industrial Engineering from Stanford University and a Ph.D. in Economics from the Massachusetts Institute of Technology.

Academic Publications

  • “Speculative Growth: Hints from the U.S. Economy” (with Ricardo Caballero and Emmanuel Farhi), American Economic Review, September 2006.
  • “The Cost of Recessions Revisited: A Reverse-Liquidationist View” (with Ricardo Caballero), Review of Economic Studies, April 2005.
  • “Institutions, Restructuring, and Macroeconomic Performance” (with Ricardo Caballero), in Jacques Drèze (ed.), Advances in Macroeconomic Theory, Basingstoke, England: Palgrave Macmillan, 2001.
  • “Creative Destruction and Development: Institutions, Crises, and Restructuring” (with Ricardo Caballero), in Boris Pleskovic and Nicholas Stern (Eds.), Annual World Bank Conference on Development Economics 2000, Washington, DC: The World Bank, 2001.
  • “The Macroeconomics of Specificity” (with Ricardo Caballero), Journal of Political Economy, August 1998.
  • “Jobless Growth: Appropriability, Factor Substitution, and Unemployment” (with Ricardo Caballero), Carnegie-Rochester Conference Series on Public Policy, June 1998.
  • “On the Ills of Adjustment” (with Ricardo Caballero), Journal of Development Economics, October 1996.
  • “On the Timing and Efficiency of Creative Destruction” (with Ricardo Caballero), Quarterly Journal of Economics, August 1996.
  • “The ‘Fundamental Transformation’ in Macroeconomics” (with Ricardo Caballero), American Economic Review, May 1996.
  • “The Cleansing Effect of Recessions” (with Ricardo Caballero), American Economic Review, December 1994.
  • “Economic Prospects for a Post-War Lebanon” (with Amer Bisat), in Stanley Fisher, Dani Rodrick et Elias Tuma (eds.), The Economics of Middle East Peace, Cambridge, MA: MIT Press, 1993.