Franco Modigliani was an eminent Italian Economist and Nobel Prize Laureate, who, with his great passion for economics, formulated many theories in his domain. Though born in Italy, he spent most of his life in America, teaching and engaging in scripting works, all of course, related to his all-time passion — economics. He was a strong antifascist who actively participated in various resistance movements with the support of Littoriali, a student organization in Italy. Greatly influenced by the great Economist John Maynard Keynes, he developed many important economic theories, most important one being the life-cycle hypothesis, which he developed with fellow economists like Irving Fisher, Roy Harrod, and Albert Ando and for which he was given the Nobel Memorial Prize in 1985. In this hypothesis, he made significant analysis on savings and financial markets. He also inspired several economics aspirants with his lectures and important discourses. Read on to explore more about the personal life, career, and achievements of this extraordinary economist.
- “Corporate Income Taxes and the Cost of Capital” — with Merton Miller, published in American Economic Review.
- “The Cost of Capital, Corporation Finance, and the Theory of Investment” with Merton Miller, published in American Economic Review.
- “Fluctuations in the Saving-Income Ratio: A Problem in Economic Forecasting” — published in ‘Studies in Income and Wealth’.
- “The Life Cycle Hypothesis of Saving: Aggregate Implications and Tests.” — with Albert Ando, in American Economic Review, 1963.
- “The Predictability of Social Events” — with Emile Grumburg, in Journal of Political Economy.
- “Utility Analysis and the Consumption Function” — with Richard Brumberg, in Post-Keynesian Economics, edited by Kenneth Kurihara.
- Nobel Memorial Prize in Economics, 1985
- MIT’s James R. Killian Faculty Achievement Award, 1985
Angus Deaton, a British academic, became the winner of the Nobel economics prize for 2015 for his analysis of consumption,
If any twentieth-century economist was a Renaissance man, it was Friedrich Hayek. He made fundamental contributions in political theory, psychology,