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Franco Modigliani
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<h2 id="early-life-and-education">Early life and education</h2> <p>Modigliani was born on 18 June 1918 in <a href="/facts/Rome/bh1Ttx3T">Rome</a> to the Jewish family of a <a href="/facts/Pediatrician/hnkMfLeg">pediatrician</a> father and a voluntary <a href="/facts/Social_worker/u5mbNfYo">social worker</a> mother.<a class="footnote-ref" id="fnref:2" href="#fn:2"><sup>2</sup></a> </p><p>He entered university at the age of seventeen, enrolling in the faculty of Law at the <a href="/facts/Sapienza_University_of_Rome/VhwH9mIr">Sapienza University of Rome</a>.<a class="footnote-ref" id="fnref:3" href="#fn:3"><sup>3</sup></a> In his second year at Sapienza, his submission to a nationwide contest in <a href="/facts/Economics/HYctA2Dn">economics</a> sponsored by the official <a href="/facts/Giovent%C3%B9_Italiana_del_Littorio/k0dUCeTm">student organization</a> of the state, won first prize and Modigliani received an award from the hand of <a href="/facts/Benito_Mussolini/q8UPaBlm">Benito Mussolini</a>.<a class="footnote-ref" id="fnref:4" href="#fn:4"><sup>4</sup></a><a class="footnote-ref" id="fnref:5" href="#fn:5"><sup>5</sup></a> He wrote several essays for the fascist magazine <i><a href="/facts/Lo_Stato/tNjXpdmC">Lo Stato</a></i><a class="footnote-ref" id="fnref:6" href="#fn:6"><sup>6</sup></a> where he showed an inclination for the fascist ideological currents critical of liberalism.<a class="footnote-ref" id="fnref:7" href="#fn:7"><sup>7</sup></a> </p><p>Among his early works in Fascist Italy was an article about the organization and management of production in a <a href="/facts/Socialist/U2kVoPaA">socialist</a> economy, written in <a href="/facts/Italian_language/YXsmvlQG">Italian</a> and arguing the case for socialism along lines laid out by earlier <a href="/facts/Market_socialist/7YPfNDgX">market socialists</a> like <a href="/facts/Abba_Lerner/NpaECK09">Abba Lerner</a> and <a href="/facts/Oskar_Lange/MR4QBdjW">Oskar Lange</a>.<a class="footnote-ref" id="fnref:8" href="#fn:8"><sup>8</sup></a> </p><p>But, that early enthusiasm evaporated soon after the passage of <a href="/facts/Italian_Racial_Laws/BFxsEzs5">racial laws in Italy</a>. In 1938, Modigliani left Italy for <a href="/facts/Paris/DrNHpwnA">Paris</a> together with his then-girlfriend, Serena Calabi, to join her parents there. After briefly returning to <a href="/facts/Rome/bh1Ttx3T">Rome</a> to discuss his <i><a href="/facts/Laurea/oFzGnKDH">laurea</a></i> thesis at the city's university, he obtained his diploma on 22 July 1939, and returned to Paris.<a class="footnote-ref" id="fnref:9" href="#fn:9"><sup>9</sup></a> </p><p>The same year, they all immigrated to the United States and he enrolled at the Graduate Faculty of the <a href="/facts/New_School_for_Social_Research/lgI7JK3E">New School for Social Research</a>. His <a href="/facts/Doctor_of_Philosophy/paJumdN8">Ph.D. dissertation</a>, an elaboration and extension of <a href="/facts/John_Hicks/8AgpsS4F">John Hicks</a>' <a href="/facts/IS%E2%80%93LM/PnsU0QNq">IS–LM</a> model, was written under the supervision of <a href="/facts/Jacob_Marschak/8Qzg4XAb">Jacob Marschak</a> and <a href="/facts/Abba_Lerner/NpaECK09">Abba Lerner</a>, in 1944,<a class="footnote-ref" id="fnref:10" href="#fn:10"><sup>10</sup></a> and is considered "ground breaking."<a class="footnote-ref" id="fnref:11" href="#fn:11"><sup>11</sup></a> </p> <h2 id="career">Career</h2> <p>From 1942 to 1944, Modigliani taught at <a href="/facts/Columbia_University/Hlf1gw53">Columbia University</a> and <a href="/facts/Bard_College/jfSuNso2">Bard College</a> as an instructor in <a href="/facts/Economics/HYctA2Dn">economics</a> and <a href="/facts/Statistics/DNPsKGYU">statistics</a>. In 1946, he became a <a href="/facts/Naturalized_citizen/xfrTf3WE">naturalized citizen</a> of the United States. In 1948, he joined the <a href="/facts/University_of_Illinois_at_Urbana%E2%80%93Champaign/gusw7HoS">University of Illinois at Urbana–Champaign</a> faculty. From 1952 to 1962, he was a member of the <a href="/facts/Carnegie_Mellon_University/XKd7L2KA">Carnegie Mellon University</a> faculty.<a class="footnote-ref" id="fnref:12" href="#fn:12"><sup>12</sup></a> </p><p>In 1962, he joined the faculty of <a href="/facts/MIT/Xk49vNA8">MIT</a>, as an <a href="/facts/Institute_Professor/z2UdmJpD">Institute Professor</a>.<a class="footnote-ref" id="fnref:13" href="#fn:13"><sup>13</sup></a> </p> <h2 id="contributions-to-economic-theory">Contributions to economic theory</h2> <p>Modigliani, beginning in the 1950s, was an originator<a class="footnote-ref" id="fnref:14" href="#fn:14"><sup>14</sup></a> of the <a href="/facts/Life-cycle_hypothesis/wwKHqd5M">life-cycle hypothesis</a>, which attempts to explain the level of <a href="/facts/Saving/UweDJ5Rr">saving</a> in the economy.<a class="footnote-ref" id="fnref:15" href="#fn:15"><sup>15</sup></a> The hypothesis that <a href="/facts/Consumer/dMflnQGX">consumers</a> aim for a stable level of <a href="/facts/Consumption_(economics)/k3eeT8bw">consumption</a> throughout their lifetime (for example by saving during their working years and then spending during their <a href="/facts/Retirement/lF0UHLuk">retirement</a>). </p><p>The <a href="/facts/Rational_expectations/SSMQLugI">rational expectations</a> hypothesis is considered by economists<a class="footnote-ref" id="fnref:16" href="#fn:16"><sup>16</sup></a> to originate in the <a class="footnote-ref" id="fnref:17" href="#fn:17"><sup>17</sup></a> paper written by Modigliani and Emile Grunberg in 1954.<a class="footnote-ref" id="fnref:18" href="#fn:18"><sup>18</sup></a><a class="footnote-ref" id="fnref:19" href="#fn:19"><sup>19</sup></a> </p><p>When he was a member of the <a href="/facts/Carnegie_Mellon_University/XKd7L2KA">Carnegie Mellon University</a> faculty, he formulated in 1958, along with <a href="/facts/Merton_Miller/f5hnx5Bo">Merton Miller</a>, the <a href="/facts/Modigliani%E2%80%93Miller_theorem/8DyhCsgf">Modigliani–Miller theorem</a> for <a href="/facts/Corporate_finance/ugQCsFBQ">corporate finance</a>.<a class="footnote-ref" id="fnref:20" href="#fn:20"><sup>20</sup></a><a class="footnote-ref" id="fnref:21" href="#fn:21"><sup>21</sup></a> The theorem posits that, under certain assumptions,<a class="footnote-ref" id="fnref:22" href="#fn:22"><sup>22</sup></a> the value of a firm is not affected by whether it is financed by <a href="/facts/Stock/Qa912YwX">equity</a> (selling shares) or by <a href="/facts/Debt/VDKsvv1q">debt</a> (borrowing money), meaning that the <a href="/facts/Debt-to-equity_ratio/TtolSWwQ">debt-to-equity ratio</a> is unimportant for private firms.<a class="footnote-ref" id="fnref:23" href="#fn:23"><sup>23</sup></a><a class="footnote-ref" id="fnref:24" href="#fn:24"><sup>24</sup></a> </p><p>In the early 1960s, his response,<a class="footnote-ref" id="fnref:25" href="#fn:25"><sup>25</sup></a> co-authored with <a href="/facts/Albert_Ando/np3xMfFf">Albert Ando</a>, to the 1963 paper<a class="footnote-ref" id="fnref:26" href="#fn:26"><sup>26</sup></a> of <a href="/facts/Milton_Friedman/koSPaJMp">Milton Friedman</a> and <a href="/facts/David_I._Meiselman/C7ATkwqr">David I. Meiselman</a>, initiated the so-called "monetary/fiscal policy debate" among economists, which went on for more than sixty years. </p><p>In 1975, Modigliani, in a paper<a class="footnote-ref" id="fnref:27" href="#fn:27"><sup>27</sup></a> whose co-author was his former student <a href="/facts/Lucas_Papademos/hA1Uzmea">Lucas Papademos</a>,<a class="footnote-ref" id="fnref:28" href="#fn:28"><sup>28</sup></a> introduced the concept of the "NIRU", the non-inflationary rate of <a href="/facts/Unemployment/qGzDQbWt">unemployment</a>,<a class="footnote-ref" id="fnref:29" href="#fn:29"><sup>29</sup></a> ostensibly an improvement over the "<a href="/facts/Natural_rate_of_unemployment/lyU29aMg">natural rate of unemployment</a>" concept.<a class="footnote-ref" id="fnref:30" href="#fn:30"><sup>30</sup></a> The terms refer to a level of unemployment below which <a href="/facts/Inflation/YvKtKrVI">inflation</a> rises.<a class="footnote-ref" id="fnref:31" href="#fn:31"><sup>31</sup></a> </p><p>In 1997, Modigliani and his granddaughter, Leah Modigliani, developed what is now called the "<a href="/facts/Modigliani_Risk-Adjusted_Performance/cP3qC8WA">Modigliani Risk-Adjusted Performance</a>," a measure of the risk-adjusted returns of an <a href="/facts/Investment_portfolio/hTnbPr1C">investment portfolio</a> that was derived from the <a href="/facts/Sharpe_ratio/FIzrWEsP">Sharpe ratio</a>, adjusted for the risk of the portfolio relative to that of a benchmark, e.g. the "market."<a class="footnote-ref" id="fnref:32" href="#fn:32"><sup>32</sup></a> </p> <h2 id="appointments-and-awards">Appointments and awards</h2> <p>In October 1985, Modigliani was awarded the <a href="/facts/Nobel_prize_in_Economics/8BBwNwre">Nobel prize in Economics</a> "for his pioneering analyses of <a href="/facts/Saving/UweDJ5Rr">saving</a> and of <a href="/facts/Financial_market/T8g8qFT5">financial markets</a>."<a class="footnote-ref" id="fnref:33" href="#fn:33"><sup>33</sup></a> </p><p>In 1985, Modigliani received MIT's James R. Killian Faculty Achievement Award.<a class="footnote-ref" id="fnref:34" href="#fn:34"><sup>34</sup></a> In 1997, he received an <i><a href="/facts/Honoris_causa/yVVgQ6Wt">honoris causa</a></i> degree in <a href="/facts/Management_Engineering/6Pmd0dKF">Management Engineering</a> from the <a href="/facts/University_of_Naples_Federico_II/Ch8TjYPA">University of Naples Federico II</a> in 1997. </p><p>Late in his life, Modigliani became a trustee of the <a href="/facts/Economists_for_Peace_and_Security/ykeMXhgg">Economists for Peace and Security</a> organization, formerly "Economists Allied for Arms Reduction"<a class="footnote-ref" id="fnref:35" href="#fn:35"><sup>35</sup></a> and was considered an "influential adviser": in the late 1960s, on a contract with the <a href="/facts/Federal_Reserve_System/VaCV51ne">Federal Reserve</a>, he designed the "MIT-Pennsylvania-Social Science Research Council" model, a tool that "guided <a href="/facts/Monetary_policy/LXehzvG0">monetary policy</a> in Washington for many decades."<a class="footnote-ref" id="fnref:36" href="#fn:36"><sup>36</sup></a> </p><p>A collection of Modigliani's papers is housed at <a href="/facts/Duke_University/BFMHVjsB">Duke University</a>'s <a href="/facts/David_Rubenstein/ScL164xM">Rubenstein</a> Library.<a class="footnote-ref" id="fnref:37" href="#fn:37"><sup>37</sup></a> </p> <h2 id="criticism">Criticism</h2> <p>Modigliani's work on fiscal policy came under criticism from followers of <a href="/facts/Post-Keynesian_economics/2fgtHgQK">Post-Keynesian economics</a>, who disputed the "Keynesianism" of his viewpoints, pointing out his contribution to the <a href="/facts/NAIRU/Ffza1KTP">NAIRU</a> concept,<a class="footnote-ref" id="fnref:38" href="#fn:38"><sup>38</sup></a> as well as his general stance on <a href="/facts/Fiscal_policy/ekVzP0xo">fiscal deficits</a>.<a class="footnote-ref" id="fnref:39" href="#fn:39"><sup>39</sup></a> The Modigliani-Miller theorem implies that, for a closed economy, state borrowing is merely deferred <a href="/facts/Tax/8cXNkA00">taxation</a>, since state spending can be financed only by "<a href="/facts/Fiscal_policy/ekVzP0xo">printing money</a>", taxation, or borrowing, and therefore monetary financing of state spending implies the subsequent imposition of a so-called "inflation tax," which ostensibly has the same effect on <a href="/facts/Permanent_income/zxmvWSXD">permanent income</a> as explicit taxation.<a class="footnote-ref" id="fnref:40" href="#fn:40"><sup>40</sup></a><a class="footnote-ref" id="fnref:41" href="#fn:41"><sup>41</sup></a> </p><p>Nonetheless, they acknowledged his dissenting voice on the issue of unemployment, in which Modigliani concurred early on<a class="footnote-ref" id="fnref:42" href="#fn:42"><sup>42</sup></a> with <a href="/facts/Heterodox_economist/CquGXYRE">heterodox economists</a> that Europe-wide unemployment in the late 20th century was caused by the lack of <a href="/facts/Demand/mtb1m6F0">demand</a> induced by <a href="/facts/Austerity/FN8Bgq2T">austerity</a> policies.<a class="footnote-ref" id="fnref:43" href="#fn:43"><sup>43</sup></a><a class="footnote-ref" id="fnref:44" href="#fn:44"><sup>44</sup></a> </p> <h2 id="personal-life">Personal life</h2> <p>In 1939, while they were in Paris, Modigliani married Serena Calabi. They had two children, Andre and Sergio Modigliani. </p><p>Modigliani died in <a href="/facts/Cambridge,_Massachusetts/k9UMIJ7U">Cambridge, Massachusetts</a>, in 2003, while still working at MIT, and teaching until the last months of his life. He was 85.<a class="footnote-ref" id="fnref:45" href="#fn:45"><sup>45</sup></a> Serena Modigliani-Calabi, active to the end in <a href="/facts/Progressive_politics/1vQyxtRD">progressive politics</a>, most notably with the <a href="/facts/League_of_Women_Voters/qbYs4Gb6">League of Women Voters</a>, and an outspoken believer in <a href="/facts/Participatory_democracy/4VekQMHp">participatory democracy</a>,<a class="footnote-ref" id="fnref:46" href="#fn:46"><sup>46</sup></a> died in 2008.<a class="footnote-ref" id="fnref:47" href="#fn:47"><sup>47</sup></a> </p> <h2 id="selected-bibliography">Selected bibliography</h2> <h3>Books</h3> <ul><li>Modigliani, Franco; Abel, Andrew B.; Johnson, Simon (1980). <i>The Collected Papers of Franco Modigliani</i>. Cambridge, Massachusetts: <a href="/facts/MIT_Press/eTerUM3c">MIT Press</a>. <a href="/facts/ISBN_(identifier)/15AdSPa9">ISBN</a> 978-0-262-13150-6.</li> <li>Modigliani, Franco; Fabozzi, Frank J. (1996). <i>Capital Markets: Institutions and Instruments</i>. Upper Saddle River, New Jersey: Prentice Hall. <a href="/facts/ISBN_(identifier)/15AdSPa9">ISBN</a> 978-0-13-300187-7.</li> <li>Modigliani, Franco; Fabozzi, Frank J.; Ferri, Michael G. (1998). <i>Foundations of Financial Markets and Institutions</i>. Upper Saddle River, New Jersey: <a href="/facts/Prentice_Hall/bynWAuat">Prentice Hall</a>. <a href="/facts/ISBN_(identifier)/15AdSPa9">ISBN</a> 978-0-13-686056-3.</li> <li>Modigliani, Franco (2001). <a href="https://archive.org/details/adventuresofecon00modi"><i>Adventures of an Economist</i></a>. London, New York: Texere. <a href="/facts/ISBN_(identifier)/15AdSPa9">ISBN</a> 978-1-58799-007-6.</li> <li>Modigliani, Franco; Muralidhar, Arun (2004). <a href="http://catdir.loc.gov/catdir/samples/cam051/2003068726.pdf"><i>Rethinking Pension Reform</i></a> (PDF). London: Cambridge University Press. <a href="/facts/ISBN_(identifier)/15AdSPa9">ISBN</a> 978-0-521-83411-7.</li></ul> <h3>Articles</h3> <ul><li>Modigliani, Franco (1944). "Liquidity Preference and the Theory of Interest and Money". <i>Econometrica</i>. 12 (1): 45–88. <a href="/facts/Doi_(identifier)/muM9Etpq">doi</a>:<a href="https://doi.org/10.2307%2F1905567">10.2307/1905567</a>. <a href="/facts/JSTOR_(identifier)/YTeVmaJ7">JSTOR</a> <a href="https://www.jstor.org/stable/1905567">1905567</a>.</li> <li>Modigliani, Franco (1998). "Lessons learned from Barbara". <i>Feminist Economics</i>. 4 (3): 143–144. <a href="/facts/Doi_(identifier)/muM9Etpq">doi</a>:<a href="https://doi.org/10.1080%2F135457098338347">10.1080/135457098338347</a>.</li></ul> <h2 id="see-also">See also</h2> <ul><li><a href="/facts/Piero_Sraffa/EIvAXWV4">Piero Sraffa</a></li> <li><a href="/facts/List_of_Jewish_Nobel_laureates/nNekdQTP">List of Jewish Nobel laureates</a></li></ul> <h2 id="notes">Notes</h2> <h2 id="external-links">External links</h2> Wikimedia Commons has media related to Franco Modigliani. Wikiquote has quotations related to <i>Franco Modigliani</i>. <ul><li><a href="http://www.econlib.org/library/Enc/bios/Modigliani.html">"Franco Modigliani (1918–2003)"</a>. <i><a href="/facts/The_Concise_Encyclopedia_of_Economics/V1Tn3BDf">The Concise Encyclopedia of Economics</a></i>. <a href="/facts/Library_of_Economics_and_Liberty/V1Tn3BDf">Library of Economics and Liberty</a> (2nd ed.). <a href="/facts/Liberty_Fund/V1Tn3BDf">Liberty Fund</a>. 2008.</li> <li><a href="https://ideas.repec.org/e/pmo37.html">Modigliani works</a>, <a href="/facts/Research_Papers_in_Economics/uXECwUyI">IDEAS/RePEc</a></li> <li><a href="https://www.c-span.org/person/?51618">Appearances</a> on <a href="/facts/C-SPAN/MdgMU5eM">C-SPAN</a></li> <li>"<a href="http://ubs.com/franco-modigliani">What influences our likelihood to save?</a>", <a href="/facts/Union_Bank_of_Switzerland/zB0IyxbK">Union Bank of Switzerland</a> website, with filmed interviews by Franco Modigliani</li> <li><a href="https://archive.org/search.php?query=%28%28subject%3A%22Modigliani%2C%20Franco%22%20OR%20subject%3A%22Franco%20Modigliani%22%20OR%20creator%3A%22Modigliani%2C%20Franco%22%20OR%20creator%3A%22Franco%20Modigliani%22%20OR%20creator%3A%22Modigliani%2C%20F%2E%22%20OR%20title%3A%22Franco%20Modigliani%22%20OR%20description%3A%22Modigliani%2C%20Franco%22%20OR%20description%3A%22Franco%20Modigliani%22%29%20OR%20%28%221918-2003%22%20AND%20Modigliani%29%29%20AND%20%28-mediatype:software%29">Works by or about Franco Modigliani</a> at the <a href="/facts/Internet_Archive/PHStU8Lo">Internet Archive</a></li> <li><a href="https://www.nobelprize.org/laureate/699">Franco Modigliani</a> on Nobelprize.org </li></ul> <h2 id="references">References</h2> <ol> <li id="fn:1"><p>Adams, Richard (1 October 2003). "Franco Modigliani". The Guardian. Retrieved 18 August 2021. <a href="https://www.theguardian.com/news/2003/oct/01/guardianobituaries.obituaries" target="_blank">https://www.theguardian.com/news/2003/oct/01/guardianobituaries.obituaries</a> <a href="#fnref:1" class="footnote-back-ref">↩</a></p></li> <li id="fn:2"><p>"Franco Modigliani" by Daniel B. Klein and Ryan Daza, in "The Ideological Migration of the Economics Laureates", Econ Journal Watch, 10(3), September 2013, pp. 472–293 <a href="/wiki/Daniel_B._Klein" target="_blank">/wiki/Daniel_B._Klein</a> <a href="#fnref:2" class="footnote-back-ref">↩</a></p></li> <li id="fn:3"><p>Parisi, Daniela (2005) "Five Italian Articles Written by the Young Franco Modigliani (1937–1938)", Rivista Internazional di Scienze Sociali, 113(4), pp. 555–557 (in language) <a href="/wiki/Italian_language" target="_blank">/wiki/Italian_language</a> <a href="#fnref:3" class="footnote-back-ref">↩</a></p></li> <li id="fn:4"><p>"Franco Modigliani" by Daniel B. Klein and Ryan Daza, in "The Ideological Migration of the Economics Laureates", Econ Journal Watch, 10(3), September 2013, pp. 472–293 <a href="/wiki/Daniel_B._Klein" target="_blank">/wiki/Daniel_B._Klein</a> <a href="#fnref:4" class="footnote-back-ref">↩</a></p></li> <li id="fn:5"><p>Franco Modigliani, autobiographical notes, Nobel Prize organization website, 1985 <a href="https://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/1985/modigliani-bio.html" target="_blank">https://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/1985/modigliani-bio.html</a> <a href="#fnref:5" class="footnote-back-ref">↩</a></p></li> <li id="fn:6"><p>Francesca Dal Degan; Fabrizio Simon (2019). ""Generalist" Journals between Dissemination of Economics and Regime Propaganda". In Massimo M. Augello; Marco E.L. Guidi; Fabrizio Bientinesi (eds.). An Institutional History of Italian Economics in the Interwar Period. Vol. 1. Cham, Switzerland: Palgrave Macmillan. pp. 146–147. doi:10.1007/978-3-030-32980-8_6. ISBN 978-3-030-32980-8. S2CID 213105744. <a href="978-3-030-32980-8" target="_blank">978-3-030-32980-8</a> <a href="#fnref:6" class="footnote-back-ref">↩</a></p></li> <li id="fn:7"><p>Luca Michelini, Il nazional-fascismo economico del giovane Franco Modigliani, Firenze, Firenze University Press, 2019 <a href="https://www.fupress.com/catalogo/il-nazional-fascismo-economico-del-giovane-franco-modigliani/3982" target="_blank">https://www.fupress.com/catalogo/il-nazional-fascismo-economico-del-giovane-franco-modigliani/3982</a> <a href="#fnref:7" class="footnote-back-ref">↩</a></p></li> <li id="fn:8"><p>Mongiovi, Gary (2015) "Franco Modigliani and the Socialist State Archived 2020-11-28 at the Wayback Machine", Economics & Finance Department, St. John's, May 2015 <a href="http://jepson.richmond.edu/conferences/summer-institute/papers2015/GMongioviSI.pdf" target="_blank">http://jepson.richmond.edu/conferences/summer-institute/papers2015/GMongioviSI.pdf</a> <a href="#fnref:8" class="footnote-back-ref">↩</a></p></li> <li id="fn:9"><p>Franco Modigliani, autobiographical notes, Nobel Prize organization website, 1985 <a href="https://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/1985/modigliani-bio.html" target="_blank">https://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/1985/modigliani-bio.html</a> <a href="#fnref:9" class="footnote-back-ref">↩</a></p></li> <li id="fn:10"><p>The basis of his dissertation subsequently appeared in Econometrica. See Modigliani (1944) <a href="#fnref:10" class="footnote-back-ref">↩</a></p></li> <li id="fn:11"><p>Mongiovi, Gary (2015) "Franco Modigliani and the Socialist State Archived 2020-11-28 at the Wayback Machine", Economics & Finance Department, St. John's, May 2015 <a href="http://jepson.richmond.edu/conferences/summer-institute/papers2015/GMongioviSI.pdf" target="_blank">http://jepson.richmond.edu/conferences/summer-institute/papers2015/GMongioviSI.pdf</a> <a href="#fnref:11" class="footnote-back-ref">↩</a></p></li> <li id="fn:12"><p>Professor Franco Modigliani, obituary, The Independent, 28 September 2003 <a href="https://www.independent.co.uk/news/obituaries/professor-franco-modigliani-37186.html" target="_blank">https://www.independent.co.uk/news/obituaries/professor-franco-modigliani-37186.html</a> <a href="#fnref:12" class="footnote-back-ref">↩</a></p></li> <li id="fn:13"><p>Professor Franco Modigliani, obituary, The Independent, 28 September 2003 <a href="https://www.independent.co.uk/news/obituaries/professor-franco-modigliani-37186.html" target="_blank">https://www.independent.co.uk/news/obituaries/professor-franco-modigliani-37186.html</a> <a href="#fnref:13" class="footnote-back-ref">↩</a></p></li> <li id="fn:14"><p>Modigliani, Franco & Richard H. Brumberg (1954) "Utility analysis and the Consumption Function: An Interpretation of Cross-Section Data", Kenneth K. Kurihara (editor) Post-Keynesian Economics, New Brunswick: Rutgers University Press, 1954, pp. 388–436 <a href="/wiki/Kenneth_K._Kurihara" target="_blank">/wiki/Kenneth_K._Kurihara</a> <a href="#fnref:14" class="footnote-back-ref">↩</a></p></li> <li id="fn:15"><p>Modigliani, Franco (1966). "The Life Cycle Hypothesis of Saving, the Demand for Wealth and the Supply of Capital". Social Research. 33 (2): 160–217. JSTOR 40969831. <a href="/wiki/Social_Research_(journal)" target="_blank">/wiki/Social_Research_(journal)</a> <a href="#fnref:15" class="footnote-back-ref">↩</a></p></li> <li id="fn:16"><p>Wade-Hands, Douglas (1986) Modigliani And Grunberg : A Precursor To Rational Expectations?, University of Puget Sound <a href="/wiki/University_of_Puget_Sound" target="_blank">/wiki/University_of_Puget_Sound</a> <a href="#fnref:16" class="footnote-back-ref">↩</a></p></li> <li id="fn:17"><p>Visco, Ignazio (1984) "Price expectations in rising inflation", Contributions to economic analysis, Volume 152, North-Holland, 1984, ISBN 0444868364, ISBN 9780444868367 <a href="/wiki/ISBN_(identifier)" target="_blank">/wiki/ISBN_(identifier)</a> <a href="#fnref:17" class="footnote-back-ref">↩</a></p></li> <li id="fn:18"><p>Grunberg, E. & Franco Modigliani (1954) "The Predictability of Social Events," Journal of Political Economy, 62, pp. 465–478, December 1954 <a href="/wiki/Journal_of_Political_Economy" target="_blank">/wiki/Journal_of_Political_Economy</a> <a href="#fnref:18" class="footnote-back-ref">↩</a></p></li> <li id="fn:19"><p>Breit, William; Spencer, Roger W. (1990). Lives of the Laureates: Ten Nobel Economists. Massachusetts: MIT Press. ISBN 978-0262023085. <a href="978-0262023085" target="_blank">978-0262023085</a> <a href="#fnref:19" class="footnote-back-ref">↩</a></p></li> <li id="fn:20"><p>Miller, Merton H. & Franco Modigliani (1958) "The cost of capital, corporate finance and the theory of investment", The American Economic Review, Vol. XLVIII, June 1958, #3, pp. 261–297. The article was a revised version of a paper delivered at the annual meeting of the Econometric Society in December 1956. <a href="https://gvpesquisa.fgv.br/sites/gvpesquisa.fgv.br/files/arquivos/terra_-_the_cost_of_capital_corporation_finance.pdf" target="_blank">https://gvpesquisa.fgv.br/sites/gvpesquisa.fgv.br/files/arquivos/terra_-_the_cost_of_capital_corporation_finance.pdf</a> <a href="#fnref:20" class="footnote-back-ref">↩</a></p></li> <li id="fn:21"><p>Miller, Merton H. & Franco Modigliani (1963) "Corporate Income Taxes and the Cost of Capital: A Correction", The American Economic Review, Vol. 53, No. 3, June 1963, pp. 433–443 <a href="/wiki/The_American_Economic_Review" target="_blank">/wiki/The_American_Economic_Review</a> <a href="#fnref:21" class="footnote-back-ref">↩</a></p></li> <li id="fn:22"><p>The theorem assumes an economic environment with an efficient market and without taxes, bankruptcy costs, agency costs, and asymmetric information. <a href="/wiki/Efficient_market" target="_blank">/wiki/Efficient_market</a> <a href="#fnref:22" class="footnote-back-ref">↩</a></p></li> <li id="fn:23"><p>Miller, Merton H. & Franco Modigliani (1958) "The cost of capital, corporate finance and the theory of investment", The American Economic Review, Vol. XLVIII, June 1958, #3, pp. 261–297. The article was a revised version of a paper delivered at the annual meeting of the Econometric Society in December 1956. <a href="https://gvpesquisa.fgv.br/sites/gvpesquisa.fgv.br/files/arquivos/terra_-_the_cost_of_capital_corporation_finance.pdf" target="_blank">https://gvpesquisa.fgv.br/sites/gvpesquisa.fgv.br/files/arquivos/terra_-_the_cost_of_capital_corporation_finance.pdf</a> <a href="#fnref:23" class="footnote-back-ref">↩</a></p></li> <li id="fn:24"><p>Miller, Merton H. & Franco Modigliani (1963) "Corporate Income Taxes and the Cost of Capital: A Correction", The American Economic Review, Vol. 53, No. 3, June 1963, pp. 433–443 <a href="/wiki/The_American_Economic_Review" target="_blank">/wiki/The_American_Economic_Review</a> <a href="#fnref:24" class="footnote-back-ref">↩</a></p></li> <li id="fn:25"><p>Ando, Albert & Franco Modigliani (1965) "The relative stability of monetary velocity and the investment multiplier", The American Economic Review, 55.4, pp. 693–728 <a href="/wiki/Albert_Ando" target="_blank">/wiki/Albert_Ando</a> <a href="#fnref:25" class="footnote-back-ref">↩</a></p></li> <li id="fn:26"><p>Friedman, Milton & David I. Meiselman (1963) "The Relative Stability of Monetary Velocity and the Investment Multiplier in the United States, 1897–1958", Stabilization Policies: A Series of Research Studies Prepared for the Commission on Money and Credit by E. C. Brown et al, Englewood Cliffs, NJ: Prentice-Hall: 1963, pp. 165–268 <a href="/wiki/Milton_Friedman" target="_blank">/wiki/Milton_Friedman</a> <a href="#fnref:26" class="footnote-back-ref">↩</a></p></li> <li id="fn:27"><p>Modigliani, Franco; Papademos, Lucas (1975). "Targets for Monetary Policy in the Coming Year" (PDF). Brookings Papers on Economic Activity. 1975 (1): 141–165. doi:10.2307/2534063. JSTOR 2534063. <a href="https://www.brookings.edu/wp-content/uploads/1975/01/1975a_bpea_modigliani_papdemos.pdf" target="_blank">https://www.brookings.edu/wp-content/uploads/1975/01/1975a_bpea_modigliani_papdemos.pdf</a> <a href="#fnref:27" class="footnote-back-ref">↩</a></p></li> <li id="fn:28"><p>Papademos went on to become Governor of the Bank of Greece from 1994 until 2002, and Prime Minister of Greece from November 2011 to May 2012. <a href="/wiki/Bank_of_Greece" target="_blank">/wiki/Bank_of_Greece</a> <a href="#fnref:28" class="footnote-back-ref">↩</a></p></li> <li id="fn:29"><p>Subsequently known as the "non-accelerating inflation rate of unemployment" (NAIRU) <a href="/wiki/NAIRU" target="_blank">/wiki/NAIRU</a> <a href="#fnref:29" class="footnote-back-ref">↩</a></p></li> <li id="fn:30"><p>Coe, David T. "Nominal Wages. The NAIRU and Wage Flexibility" (PDF). Organisation for Economic Co-operation and Development. <a href="http://www.oecd.org/dataoecd/59/19/33917832.pdf" target="_blank">http://www.oecd.org/dataoecd/59/19/33917832.pdf</a> <a href="#fnref:30" class="footnote-back-ref">↩</a></p></li> <li id="fn:31"><p>Inflation "rises"; it does not "accelerate," as can often be misread from the acronym NAIRU <a href="/wiki/NAIRU" target="_blank">/wiki/NAIRU</a> <a href="#fnref:31" class="footnote-back-ref">↩</a></p></li> <li id="fn:32"><p>Modigliani, Franco & Leah Modigliani (1997) "Risk-Adjusted Performance", The Journal of Portfolio Management, Winter 1997, 23 (2), pp. 45–54 <a href="/wiki/The_Journal_of_Portfolio_Management" target="_blank">/wiki/The_Journal_of_Portfolio_Management</a> <a href="#fnref:32" class="footnote-back-ref">↩</a></p></li> <li id="fn:33"><p>Press Release, Nobel Prize Organisation, 15 October 1985 <a href="https://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/1985/press.html" target="_blank">https://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/1985/press.html</a> <a href="#fnref:33" class="footnote-back-ref">↩</a></p></li> <li id="fn:34"><p>Fabozzi, Frank J.; Frank J. Jones; Franco Modigliani (2010). Foundations of Financial Markets and Institutions. Pearson Education, Inc. pp. Dedication. ISBN 978-0-13-613531-9. <a href="978-0-13-613531-9" target="_blank">978-0-13-613531-9</a> <a href="#fnref:34" class="footnote-back-ref">↩</a></p></li> <li id="fn:35"><p>The Newsletter for Economists Allied for Arms Reduction Archived 2016-04-09 at the Wayback Machine, Vol. 12, 1, April 2000 <a href="http://www.epsusa.org/publications/newsletter/2000/april2000/NewsNetworkApril2000.pdf" target="_blank">http://www.epsusa.org/publications/newsletter/2000/april2000/NewsNetworkApril2000.pdf</a> <a href="#fnref:35" class="footnote-back-ref">↩</a></p></li> <li id="fn:36"><p>Professor Franco Modigliani, obituary, The Independent, 28 September 2003 <a href="https://www.independent.co.uk/news/obituaries/professor-franco-modigliani-37186.html" target="_blank">https://www.independent.co.uk/news/obituaries/professor-franco-modigliani-37186.html</a> <a href="#fnref:36" class="footnote-back-ref">↩</a></p></li> <li id="fn:37"><p>"Franco Modigliani Papers, 1936–2005 and undated, bulk 1970s–2003". Rubenstein Library, Duke University. <a href="http://library.duke.edu/rubenstein/findingaids/modigliani/" target="_blank">http://library.duke.edu/rubenstein/findingaids/modigliani/</a> <a href="#fnref:37" class="footnote-back-ref">↩</a></p></li> <li id="fn:38"><p>Mitchell, William (2016) "The Modigliani controversy: The break with Keynesian thinking", 21 January 2016 <a href="/wiki/Bill_Mitchell_(economist)" target="_blank">/wiki/Bill_Mitchell_(economist)</a> <a href="#fnref:38" class="footnote-back-ref">↩</a></p></li> <li id="fn:39"><p>E.g. Modigliani Andre & Franco Modigliani (1987) "The Growth of the Federal Deficit and the pole of public attitudes", Public Opinion Quarterly, Volume 51, University of Chicago Press, pp. :459–480 <a href="/wiki/Public_Opinion_Quarterly" target="_blank">/wiki/Public_Opinion_Quarterly</a> <a href="#fnref:39" class="footnote-back-ref">↩</a></p></li> <li id="fn:40"><p>See "crowding out effect" <a href="/wiki/Crowding_out_effect" target="_blank">/wiki/Crowding_out_effect</a> <a href="#fnref:40" class="footnote-back-ref">↩</a></p></li> <li id="fn:41"><p>Blejer, Mario I.Adrienne Cheasty (1993) "How to measure the fiscal deficit : analytical and methodological issues", Washington, DC : International Monetary Fund <a href="/wiki/International_Monetary_Fund" target="_blank">/wiki/International_Monetary_Fund</a> <a href="#fnref:41" class="footnote-back-ref">↩</a></p></li> <li id="fn:42"><p>Modigliani, Franco (2000) "Europe"s Economic Problems", Carpe Oeconomiam Papers in Economics, 3rd Monetary and Finance Lecture, Freiburg, 6 April 2000 <a href="#fnref:42" class="footnote-back-ref">↩</a></p></li> <li id="fn:43"><p>Mitchell, William (2011) "Lies, damned lies, and statistics", 13 July 2011 <a href="/wiki/Bill_Mitchell_(economist)" target="_blank">/wiki/Bill_Mitchell_(economist)</a> <a href="#fnref:43" class="footnote-back-ref">↩</a></p></li> <li id="fn:44"><p>Demand-driven fiscal policies, as opposed to supply-driven, are a cornerstone of Keynesian and Post-Keynesian economics. For a critique of European economic policies from a modern, Post-Keynesian point of view, see e.g. Mitchell, William (2016) Eurozone Dystopia: Groupthink and Denial on a Grand Scale, Edward Elgar, 2015, ISBN 978-1784716653 <a href="/wiki/Supply-side_economics" target="_blank">/wiki/Supply-side_economics</a> <a href="#fnref:44" class="footnote-back-ref">↩</a></p></li> <li id="fn:45"><p>"In March 2003, only few months before his demise, I was at MIT and witnessed Franco [Modigliani] still teaching with the same enthusiasm another class at the Sloan School of Management" : from Pagano, Marco (2005) "The Modigliani-Miller Theorems: A Cornerstone of Finance", Center for Studies in Economics and Finance, May 2005 <a href="/wiki/Sloan_School_of_Management" target="_blank">/wiki/Sloan_School_of_Management</a> <a href="#fnref:45" class="footnote-back-ref">↩</a></p></li> <li id="fn:46"><p>"Chilmarker Serena Modigliani, 91, Escaped Fascism", Vineyard Gazette, 9 October 2008 <a href="https://vineyardgazette.com/obituaries/2008/10/10/chilmarker-serena-modigliani-91-escaped-fascism" target="_blank">https://vineyardgazette.com/obituaries/2008/10/10/chilmarker-serena-modigliani-91-escaped-fascism</a> <a href="#fnref:46" class="footnote-back-ref">↩</a></p></li> <li id="fn:47"><p>Serena Calabi obituary, The Boston Globe, 24 September 2008 <a href="http://www.legacy.com/obituaries/bostonglobe/obituary.aspx?n=serena-modigliani&pid=117938563" target="_blank">http://www.legacy.com/obituaries/bostonglobe/obituary.aspx?n=serena-modigliani&pid=117938563</a> <a href="#fnref:47" class="footnote-back-ref">↩</a></p></li> </ol>