The Relationship between Regional Income Inequality and Financial Instability
Channel: Latest Thinking
Date: 2021-01-22

For more Science Videos: https://lt.org/
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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. 
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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. 
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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.
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Mitkov is Junior Professor of Finance at the University of Bonn and part of the Collaborative Research Center Transregio 224: 
https://www.crctr224.de/en/research-output/videos

0:00 Question
0:51 Method
4:13 Findings
6:55 Relevance
9:42 Outlook