When and where was Franco Modigliani born?
Franco Modigliani entered the world on the 18th of June 1918 in Rome. He was born into a Jewish family where his father worked as a pediatrician and his mother volunteered as a social worker.
Franco Modigliani entered the world on the 18th of June 1918 in Rome. He was born into a Jewish family where his father worked as a pediatrician and his mother volunteered as a social worker.
Franco Modigliani left Italy to escape racial laws passed by the fascist government in 1938. He immigrated to the United States with Serena Calabi in 1939 after obtaining his diploma on the 22nd of July 1939.
The life-cycle hypothesis suggests consumers aim for stable consumption throughout their lifetime by saving during working years and spending during retirement. This theory explains the level of saving in an economy through consumer behavior patterns beginning in the 1950s.
The Modigliani-Miller theorem posits that under certain assumptions firm value remains unaffected by financing method whether a company sells shares or borrows money. A revised version appeared in June 1963 correcting earlier points about corporate income taxes.
Franco Modigliani received the Nobel Memorial Prize in Economics in October 1985. The committee cited his pioneering analyses of saving and financial markets as reasons for the award while he was an Institute Professor at MIT since joining its faculty in 1962.