Individuals attempt to attain a stable level of consumption throughout their lives by anticipating their lifetime resources, an idea became known as the life-cycle hypothesis of saving.
He developed a theory of corporate finance with Merton H. Miller that showed the method of a company's financing has no determining influence on the value of the firm; rather, the pair noted, value is dependent chiefly on the productivity and management of a company. He is more famous for another idea described with his colleague Richard Brumberg in 1954. Individuals attempt to attain a stable level of consumption throughout their lives by anticipating their lifetime resources, an idea became known as the life-cycle hypothesis of saving. FTP identify this man who earned a doctorate from the New School for Social Research, teaches at MIT, and won the Nobel prize for economics in 1985.
He developed a theory of corporate finance with Merton H. Miller that showed the method of a company's financing has no determining influence on the value of the firm; rather, the pair noted, value is dependent chiefly on the productivity and management of a company.
Franco Modigliani