What is the Relationship Between Regional Inequality and Financial Instability?

Yuliyan Mitkov
Profile Picture of - Yuliyan Mitkov

Yuliyan Mitkov

Abstract information

Income inequality has increased greatly in both the United States and Europe since the 1970s. In this video, YULIYAN MITKOV explores the relationship between income inequality in specific regions of the U.S. and financial instability. Relying on U.S. Census Bureau data on income in specific Meropolitan Statistical Areas (M.S.As), Mitkov employs theoretical and statistical modeling to analyze this relationship. Mitkov finds that regions with high income inequality tend to have more failed banks. The research also explores why particular banks take on greater risk and looks to explore how the regulator might best intervene in situations where financial instability threatens.

Researcher

Yuliyan Mitkov is an Assistant Professor in the University of Bonn’s Institute for Finance and Statistics. He completed his PhD at Rutgers University in 2017. Mitkov’s main research interests include banking, financial economics and corporate finance. Among the awards that Mitkov has received have been the Sidney Brown Prize in Economics (2014) and the Bevier Fellowship (2016-17).

Institution information

University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)

The University of Bonn is one of Germany’s most prestigious and research-intensive institutions, consistently ranked among the top universities worldwide. Founded in 1818, it is celebrated for its academic excellence, particularly in mathematics and economics, and boasts a record of producing several Nobel Laureates and Fields Medalists. Located in the former German capital, the university is integrated into the city’s historic fabric, offering a vibrant international environment and a diverse range of programs across seven faculties. As a member of the elite U15 group, it remains a global leader in innovation and higher education.
University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)
Cover Photo of - University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)

Original Publication

Unequal and Unstable: Income Inequality and Bank Risk

Book Recommendation

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Daniel Kahneman

Two systems compete in our minds: Number one is fast and emotional, number two slower and more logical. The all time bestseller "Thinking Fast and Slow" by psychologist Daniel Kahneman explains how these systems work in an intriguing way.

Citation

Yuliyan Mitkov, 

Latest Thinking, 

What is the Relationship Between Regional Inequality and Financial Instability?, 

Credits:

© Yuliyan Mitkov 

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