Search results
Life-cycle hypothesis
- Modigliani, beginning in the 1950s, was an originator of the life-cycle hypothesis, which attempts to explain the level of saving in the economy. The hypothesis that consumers aim for a stable level of consumption throughout their lifetime (for example by saving during their working years and then spending during their retirement).
en.wikipedia.org › wiki › Franco_Modigliani
The Modigliani–Miller theorem (of Franco Modigliani, Merton Miller) is an influential element of economic theory; it forms the basis for modern thinking on capital structure. [1] The basic theorem states that in the absence of taxes, bankruptcy costs, agency costs, and asymmetric information, and in an efficient market, the enterprise value ...
People also ask
What is Franco Modigliani best known for?
Why did Franco Modigliani win a Nobel Prize?
What is the Modigliani Miller theorem?
Was Modigliani based on a life-cycle theory?
Franco Modigliani (18 June 1918 – 25 September 2003) [1] was an Italian-American economist and the recipient of the 1985 Nobel Memorial Prize in Economics. He was a professor at University of Illinois at Urbana–Champaign , Carnegie Mellon University , and MIT Sloan School of Management .
In the early 1950s, Franco Modigliani and his student Richard Brumberg worked out a theory of spending based on the idea that people make intelligent choices about how much they want to spend at each age, limited only by the resources available over their lives.
- 58KB
- 22
The M&M Theorem, or the Modigliani-Miller Theorem, is one of the most important theorems in corporate finance. It was developed by economists Franco Modigliani and Merton Miller in 1958.
Aug 1, 2024 · The Modigliani-Miller theorem (M&M) states that the market value of a company is calculated as the present value of its future earnings and underlying assets. The theorem was developed in the...
Franco Modigliani was an Italian-American economist known for his work in macroeconomics and corporate finance. What is the Life-Cycle Theory? The Life-Cycle Theory, proposed by Modigliani, is an analysis of personal savings trends used to predict future effects of pension plans.
May 28, 2022 · Franco Modigliani was a Nobel Prize-winning Italian economist highly regarded for his contributions to economics. His life-cycle consumption theory explained how people borrow, spend,...
