Philip Dybvig

Philip H. Dybvig, a banking and finance expert at Washington University in St. Louis, is one of three economists to share the 2022 Nobel Prize in economic ...

Of waking up to the news that he was selected as one of this year’s winners, Dybvig said, “I’m really honored to be recognized along with Ben Bernanke and Doug Diamond. The economics prize was established by Sweden’s central bank and first awarded in 1969, its formal name being the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel. He is the second WashU person to receive the Nobel in economics. The “Diamond-Dybvig model” became synonymous with the study of banking, financial crises, liquidity and bank runs. “With his co-author, Douglas Diamond, Phil published a seminal paper on bank runs in 1983 that provided a rigorous theoretical model of how even an otherwise healthy bank can collapse due to a run on its deposits caused by a coordination failure among depositors. “By helping us to understand the role of banks in the economy, his research has been instrumental in how we respond to financial crises, and attempt to head them off in the first place. In the crisis in 2008, a lot of things run on banks — money market funds, the repo market, bank commercial paper. When Dybvig and Diamond created their model in 1983, there hadn’t been a bank run in the United States since the Great Depression, some 50 years or so earlier. The Nobel Prize is a tremendous honor — first and foremost for the individual recipients, but also for their academic institutions. “Philip Dybvig is a brilliant economist whose work has been transformative in his field and has had an indelible impact on our nation’s financial markets and the health of our economy,” Chancellor Andrew D. Sharing the award with Dybvig and Diamond is Ben S. Dybvig](https://olin.wustl.edu/EN-US/Faculty-Research/Faculty/Pages/FacultyDetail.aspx?username=dybvig), a banking and finance expert at Washington University in St.