Philip H. Dybvig
The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2022
Born: 22 May 1955, Gainesville, FL, USA
Affiliation at the time of the award: Washington University, St. Louis, MO, USA
Prize motivation: “for research on banks and financial crises”
Prize share: 1/3
What is the role of banks in the economy and society? What happens if they collapse?
The foundations of modern banking research were laid by Ben Bernanke, Douglas Diamond and Philip Dybvig in the early 1980s. Dybvig and Diamond developed theoretical models that explain why banks exist, how their role in society makes them vulnerable to rumours about their impending collapse, and how society can lessen this vulnerability. These insights form the foundation of modern bank regulation.