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Franco Modigliani

economist , educator

Franco MODIGLIANI, Italian economist in the field of General Economic Theory. President, Econometric Society, 1962, American Economic Association, 1976, American Finance Association, 1981; Academic Consultant, Board Governors, Federal Reserve System, since 1966; Senior Adviser, Brookings Panel Economics Activity, since 1971; Member, National Academy of Sciences, USA, since 1973; Vice-President, Honorary President

Background

Modigliani, Franco was born on June 18, 1918 in Rome. Arrived in the United States, 1939, naturalized, 1946. Son of Enrico and Olga (Flaschel) Modigliani.

Education

D. Jurisprudence, University Rome, 1939. D. Social Science, New School Social Research, 1944. Doctor of Laws (honorary), University Chicago, 1967.

D. honoris causa(honorary), University Louvain, Belgium, 1974. D. honoris causa(honorary), Istituto Universitario di Bergamo, 1979. D. honoris causa(honorary), Hartford University.

Doctor of Humane Letters(honorary), Bard College, 1985. Doctor of Humane Letters(honorary), Brandeis University, 1986. Doctor of Humane Letters(honorary), New School Social Research, 1989.

Doctor of Laws, Michigan State University, 1989. D (honorary), University Illinois, 1990. D (honorary), University Valencia, Spain, 1992.

Doctor in Managerial Engineering(honorary), University Naples, 1998.

Career

Instructor economics and statistics New Jersey College Women, New Brunswick, 1942. Instructor, then associate economics and statistics Bard College, Columbia, 1942—1944. Lecturer, assistant professor mathematics economics and econometrics New School Social Research, 1943—1944, 1946—1948.

Research associate, chief statistician Institute World Affairs, New York City, 1945—1948. Research consultant Cowles Commission Research in Economics University Chicago, 1949—1954. Associate professor, then professor economics University Illinois, 1949—1952.

Professor economics and industrial administration Carnegie Institute of Technology, 1952—1960. Visiting professor economics Harvard University, 1957—1958. Professor economics Northwestern University, 1960—1962.

Visiting professor economics Massachusetts Institute of Technology, 1960—1961, professor economics and finance, 1962—1988, Institute professor, 1970—1988, Institute professor emeritus, 1988—2003. Fellow political economy University Chicago, 1948. Fulbright lecturer University Rome, also, Palermo, Italy, 1955.

Achievements

  • President, Econometric Society, 1962, American Economic Association, 1976, American Finance Association, 1981. Academic Consultant, Board Governors, Federal Reserve System, since 1966. Senior Adviser, Brookings Panel Economics Activity, since 1971.

    Member, National Academy of Sciences, USA, since 1973. Vice-President, Honorary President, International Economie Association, 1976-1981,1983;Nobel Prize, 1985.

Works

Views

Contributed to clarifying the relation between the Keynesian ‘revolution’, classical economics and monetarism, and implication for monetary and fiscal stabilisation policies. Had major responsibility for building model of United States economy (MPS) for Federal Reserve System. Originated the life-cycle hypothesis of saving which has found wide applications in the study of family and national saving.

Author (with M. Miller) of two theorems basic to modern finance to the effect that under efficient, rational markets, and abstracting from tax effects, the market value of a firm and its costs of capital are independent of both the debt-equity ratio and the dividend-payout ratio.

Membership

Fellow: National Academy of Sciences, International Economic Association (vice president 1977-1983, honorary president 1983—2003), American Academy Arts and Sciences, American Economic Association (vice president 1971, president 1976), Econometric Society (council 1960, vice president 1961, president 1962). Member: Shadow Finance Regulatory Committee, Accademia Nazionale dei Lincei (Rome), Boston Security Analysts Society (honorary), American Finance Association (president 1981).

Interests

  • Other Interests

    Sailing, swimming, skiing, tennis.

Connections

Married Serena Calabi, May 22, 1939. Children: Andre, Sergio.

father:
Enrico Modigliani

mother:
Olga (Flaschel) Modigliani

spouse:
Serena Calabi

children:
Andre Modigliani

Sergio Modigliani