Abstract
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.
Keywords
- 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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Barro, R. 1974. Are government bonds net worth? Journal of Political Economy 82: 1095–1117.
Duesenberry, J. 1949. Income, saving, and the theory of consumer behavior. Cambridge: Harvard University Press.
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Goldsmith, R. 1962. The national wealth of the United States in the postwar period. Princeton: Princeton University Press.
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Keynes, J.M. 1936. The general theory of employment, interest, and money. New York: Harcourt, Brace.
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Merton, R. 1987. In honor of Nobel Laureate, Franco Modigliani. Journal of Economic Perspectives 1(2): 145–155.
MIT (Massachusetts Institute of Technology). 2003. Nobel laureate Franco Modigliani dies at 85. News Office, MIT. Online. Available at: http://web.mit.edu/newsoffice/2003/modigliani.html. Accessed 11 Nov 2003.
Muth, J.F. 1961. Rational expectations and the theory of price movements. Econometrica 29: 315–335.
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Partial support for this research was provided by the National Science Foundation and the Center for Social and Economic Policy at the University of California, Riverside.
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© 2018 Macmillan Publishers Ltd.
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Sutch, R. (2018). Modigliani, Franco (1918–2003). In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2780
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DOI: https://doi.org/10.1057/978-1-349-95189-5_2780
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Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-95188-8
Online ISBN: 978-1-349-95189-5
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