The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Modigliani, Franco (1918–2003)

  • Richard Sutch
Reference work entry


This article focuses on the scholarly contributions of Franco Modigliani, 1985 Nobel laureate in economics. Particular attention is given to his formulation of the determinants of equilibrium in Keynesian macroeconomics, the life-cycle hypothesis of saving, his contributions to the theory of expectations, and the Modigliani–Miller theorems of corporate finance. The objective is to demonstrate Modigliani’s importance in the history of economics.


Aging and retirement American Economic Association American Finance Association Ando, A. Arbitrage Barro, R. Bequest motive Bonds Budget deficits Buffer stocks Business cycle Classical economists Consumption function Corporate finance Cost of capital Dividend policy Duesenberry–Modigliani hypothesis Econometric Society Expectations Federal Reserve System Finance theory Fiscal policy FMP model Friedman, M. Great Depression Greenspan, A. Hicks, J. Life cycle hypothesis Life-cycle theory of saving Infinite horizons Inflation Information cost Inventories Investment function IS–LM model Keynes, J. M. Keynesian revolution Koopmans, T. C. Lange, O. R. Lerner, A. P. Life-cycle hypothesis Liquidity trap Long-term contracts Marginal utility analysis Marschak, J. Microfoundations Miller, M. MIT model Modigliani Franco Modigliani–Miller theorem Monetarism Monetary policy Money demand Money income vs real income Money supply Muth, J. F. National debt Neoclassical synthesis New classical macroeconomics Permanent income hypothesis Precautionary savings Preferred maturity habitat Price control; quantity theory of money Rational expectations Real money Relative income hypothesis Ricardian equivalence theorem Rules vs discretion in policy Saving and growth Saving–income ratio Shiller, R. Simultaneous equations Social Security (USA) Stabilization policy Sticky wages Stock price volatility Sutch, R. Term structure of interest rates Uncertainty Underemployment equilibrium 

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Richard Sutch
    • 1
  1. 1.