Franco Modigliani, 1918-2003

Portrait of F. Modigliani

Neo-Keynesian macroeconomist at M.I.T.

Originating from Italy, Franco Modigliani joined the emigre wave of the 1930s, and became a student of Jacob Marschak's at the New School for Social Research,  In the model presented in his Ph.D thesis (1944), Modigliani was to provide the nucleus of the Neo-Keynesian Synthesis of post-war macroeconomics. His further work went on to consolidate much of that research effort - whether in his "Life-Cycle Hypothesis" for the consumption function (1953) or in the building of large macroeconometric models - such as his famous MPS model. He also made several important contributions to theory of money and finance - notably, the fundamental "Modigliani-Miller" theorem (1958) of corporate finance and the "Preferred Habitat" theory (19??) for the term structure of interest rates. Modigliani was teaching at M.I.T. when he won the Nobel prize in 1985.

 

Major works of Franco Modigliani

  • "Liquidity Preference and the Theory of Interest and Money", 1944, Econometrica.
  • "Utility Analysis and the Consumption Function: An interpretation of cross section data", with R. Brumberg, 1954, in Kurihara, editor, Post Keynesian Economics.
  • "The Cost of Capital, Corporation Finance and the Theory of Investment", 1958, with M.H. Miller, AER
  • "New Developments on the Oligopoly Front", 1958, AER.
  • "Corporate Income Taxes and the Cost of Capital: A correction", with M.H. Miller, 1963, AER.
  • "The Life Cycle Hypothesis of Saving", with A. Ando, 1963, AER.
  • "The Monetary Mechanism and its Interaction with Real Phenomena", 1963, REStat.
  • "The Pasinetti Paradox in Neoclassical and More General Models", with P. Samuelson, 1966, RES.
  • "Monetary Policy and Consumption", 1971, in Consumer Spending and Monetary Policy.
  • "The Monetarist Controversy or should we forsake stabilization policies", 1977, AER.
  • "Toward an Understanding of the Real Effects and Costs of Inflation", with S.Fischer 1979, WWA.
  • "Life Cycle, Individual Thrift and the Wealth of Nations", 1986, AER.
  • "The Role of Intergeneration Transfers and Life-Cycle Saving in the Accumulation of Wealth", 1988, JEP.
  • The Debate over Stabilization Policies
  • "The Supply of Money and the Control of Nominal Income" with L. Papademos, 1990, in Friedman and Hahn, editors, Handbook of Monetary Economics - intro.
  • The European economic recovery : a need for new policies?
  • Capital Markets : Institutions and Instruments, with Frank J. Fabozzi, 1996
  • "Growth, investments, Public Deficit and Maastricht", 1996, Nobels for the Future
  • "Technological Innovation and Labour Policies ", 1998, Nobels for the Future
  • "Business Expectations and Strategy for the United States of Europe" with H. Askari, 1997, Stategy and Business
  • "A Euro minus the D-Mark" with M. Baldassarri, 1997, Financial Times
  • "Perils of unemployment" with G. LaMalfa, 1998, Financial Times
  • Letter to Financial Times with G. LaMalfa, 1998 
  • "La banca che vogliamo" with G. LaMalfa, 1998, Corriere della sera
  • "Il debito italiano? Non fa paura", with G. LaMalfa, 1998, Corriere della sera
  • "Yes to the Euro, but Also to an Investment Plan for Jobs" with G. LaMalfa, 1998, Herald Tribune
  • "A Solution to the Social Security Reform", with M.L. Ceprini and A.S. Muralidhar, 2000

 


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