Merton Miller


Merton Miller
Merton Miller
Chicago School of Economics
Merton Miller.jpg
Born 16 May 1923(1923-05-16)
Boston, Massachusetts
Died 3 June 2000(2000-06-03) (aged 77)
Chicago, Illinois, USA
Nationality United States
Institution Carnegie Mellon University
University of Chicago
Field Economics
Alma mater Johns Hopkins University (Ph.D.)
Harvard University (M.A.)
Influences Fritz Machlup
Influenced Eugene Fama
Michael Jensen
Richard Roll
Myron Scholes
Contributions Modigliani-Miller theorem
Awards Nobel Memorial Prize in Economic Sciences (1990)

Merton Howard Miller (May 16, 1923 – June 3, 2000) was the co-author of the Modigliani-Miller theorem which proposed the irrelevance of debt-equity structure. He shared the Nobel Memorial Prize in Economic Sciences in 1990, along with Harry Markowitz and William Sharpe. Miller spent most of his academic career at the University of Chicago Booth School of Business.

Contents

Biography

Early years

Miller was born Jewish, in Boston, Massachusetts to Joel and Sylvia Miller, an attorney and housewife.[1] He worked during World War II as an economist in the division of tax research of the Treasury Department, and received a Ph.D. in economics from Johns Hopkins University, 1952. His first academic appointment after receiving his doctorate was Visiting Assistant Lecturer at the London School of Economics.

Career

In 1958, at Carnegie Institute of Technology (now Carnegie Mellon University), he collaborated with his colleague Franco Modigliani there to write a paper on “The Cost of Capital, Corporate Finance and the Theory of Investment.” This paper urged a fundamental objection to the traditional view of corporate finance, according to which a corporation can reduce its cost of capital by finding the right debt-to-equity ratio. According to the Modigliani-Miller theorem, on the other hand, there is no right ratio, so corporate managers should seek to minimize tax liability and maximize corporate net wealth, letting the debt ratio chips fall where they will.

The way in which they arrived at this conclusion made use of the "no arbitrage" argument, i.e. the premise that any state of affairs that will allow traders of any market instrument to create a riskless money machine will almost immediately disappear. They set the pattern for many arguments based on that premise in subsequent years.

Miller wrote or co-authored eight books. He became a fellow of the Econometric Society in 1975 and was president of the American Finance Association in 1976. He was on the faculty of the University of Chicago Graduate School of Business from 1961 until his retirement in 1993, although he continued teaching at the school for several more years.

His works formed the basis of the "Modigliani-Miller Financial Theory".

He served as a public director on the Chicago Board of Trade 1983-85 and the Chicago Mercantile Exchange from 1990 until his death in Chicago on June 3, 2000.

Personal life

Miller was married to Eleanor Miller, who died in 1969. He was survived by his second wife, Katherine Miller, and by three children from his first marriage and two grandsons.[2] Three children by his first marriage: Pamela (1952), Margot (1955), and Louise (1958).

Bibliography

  • Merton H. Miller (1991). Merton Miller on Derivatives. New York: John Wiley & Sons. ISBN 0471183407. 
  • Merton H. Miller (1991). Financial Innovations and Market Volatility. Cambridge, MA: Blackwell Publishing. ISBN 1557862524. 
  • Merton, Miller H.; Charles W. Upton (1986). Macroeconomics: A Neoclassical Introduction. Chicago: University of Chicago Press. ISBN 0226526232. 
  • Kessel, Reuben A.; R. H. Coase, Merton H. Miller (1980). Essays in Applied Price Theory. Chicago: University of Chicago Press. ISBN 0226432009. 
  • Fama, Eugene F.; Merton H. Miller (1972). The Theory of Finance. New York: Holt, Rinehart & Winston. ISBN 0030867320. 

See also

References

  1. ^ "Merton H. Miller". The Notable Names Database. 2008. http://www.nndb.com/people/174/000159694/. Retrieved 2008-09-18. 
  2. ^ Louis Uchitelle (2000). "Merton H. Miller, 77, Dies; Economist Who Won Nobel," New York Times, June 5.[1]

External links


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Merton Miller — (16 mai 1923 3 juin 2000) est un économiste américain. Il est récipiendaire du Prix de la Banque de Suède en sciences économiques en mémoire d Alfred Nobel. Merton Miller et l économiste italo américain Franco Modigliani ont jeté les bases de la… …   Wikipédia en Français

  • Merton Miller — Merton Howard Miller (* 16. Mai 1923 in Boston, Massachusetts; † 3. Juni 2000 in Chicago) war US amerikanischer Ökonom und erhielt zusammen mit Harry Markowitz und William Sharpe den Nobelpreis für Wirtschaftswissenschaften im Jahre 1990 für… …   Deutsch Wikipedia

  • Merton Miller — Merton Howard Miller (16 de mayo de 1923 – 3 de junio de 2000) ganó el Premio Nobel de Economía en 1990 con Harry Markowitz y William Sharpe. Fue profesor de la prestigiosa University of Chicago Booth School of Business de 1961 hasta su retiró en …   Wikipedia Español

  • Merton Miller — A prominent Chicago school economist. Miller was born in 1923 in Boston and won the Nobel Memorial Prize in Economics in 1990, along with Harry Markowitz and William Sharpe, for his work on the Modigliani Miller theorem, which deals with the… …   Investment dictionary

  • Merton H. Miller — Merton Miller Merton Miller (16 mai 1923 3 juin 2000) est un économiste américain. Il est récipiendaire du Prix de la Banque de Suède en sciences économiques en mémoire d Alfred Nobel. Merton Miller et l économiste italo américain Franco… …   Wikipédia en Français

  • Miller — Cette page d’homonymie répertorie les différents sujets et articles partageant un même nom. Sur les autres projets Wikimedia : « Miller », sur le Wiktionnaire (dictionnaire universel) En anglais, le mot miller signifie un meunier.… …   Wikipédia en Français

  • Merton Howard Miller — (* 16. Mai 1923 in Boston, Massachusetts; † 3. Juni 2000 in Chicago) war US amerikanischer Ökonom und erhielt zusammen mit Harry Markowitz und William Sharpe den Nobelpreis für Wirtschaftswissenschaften im Jahre 1990 für seine grundlegenden… …   Deutsch Wikipedia

  • Merton H. Miller — Merton Howard Miller (* 16. Mai 1923 in Boston, Massachusetts; † 3. Juni 2000 in Chicago) war US amerikanischer Ökonom und erhielt zusammen mit Harry Markowitz und William Sharpe den Nobelpreis für Wirtschaftswissenschaften im Jahre 1990 für… …   Deutsch Wikipedia

  • Miller (Familienname) — Miller ist ein Familienname, der im englischsprachigen Raum selten auch als Vorname vorkommt. Herkunft und Bedeutung Miller ist die englische Variante des deutschen Familiennamens „Müller“ oder „Müllner“ und eine häufige regionale (bayrischer und …   Deutsch Wikipedia

  • Miller,Merton Howard — Miller, Merton Howard. Born 1923. American economist. He shared a 1990 Nobel Prize for contributions to financial economics. * * * …   Universalium


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.