Merton Miller
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| Merton Miller | |
| Born | May 16, 1923 Boston, Massachusetts |
|---|---|
| Died | June 3, 2000 (aged 77) Chicago, Illinois |
| Residence | U.S.  |
| Nationality | US |
| Fields | Economics |
| Institutions | Carnegie Mellon University University of Chicago |
| Alma mater | Johns Hopkins University (Ph.D.) Harvard University (M.A.) |
| Doctoral advisor | Fritz Machlup |
| Doctoral students | Eugene Fama Michael Jensen Richard Roll Myron Scholes |
| Known for | Modigliani-Miller theorem |
| Notable awards | Nobel Prize in Economics (1990) |
Merton Howard "Mert" Miller (May 16, 1923 – June 3, 2000) shared the Nobel Prize in Economics in 1990, along with Harry Markowitz and William Sharpe.
He was born in Boston, Massachusetts. 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.
In 1958, at Carnegie Institute of Technology (now Carnegie-Mellon University) whose Graduate School of Industrial Administration (now Tepper School of Business) was the first and most influential research-oriented U.S. business school, 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 Miller-Modigliani 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.
Mr. 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.
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 3rd, 2000.
[edit] Selected books
- Merton H. Miller (1991). Merton Miller on Derivatives. New York: John Wiley & Sons. ISBN 0-471-18340-7.
- Merton H. Miller (1991). Financial Innovations and Market Volatility. Cambridge, MA: Blackwell Publishing. ISBN 1-557-86252-4.
- Merton, Miller H.; Charles W. Upton (1986). Macroeconomics: A Neoclassical Introduction. Chicago: University of Chicago Press. ISBN 0-226-52623-2.
- Kessel, Reuben A.; R. H. Coase, Merton H. Miller (1980). Essays in Applied Price Theory. Chicago: University of Chicago Press. ISBN 0-226-43200-9.
- Fama, Eugene F.; Merton H. Miller (1972). The Theory of Finance. New York: Holt, Rinehart & Winston. ISBN 0-030-86732-0.
[edit] See also
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| Persondata | |
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| NAME | Miller, Merton |
| ALTERNATIVE NAMES | |
| SHORT DESCRIPTION | American economist |
| DATE OF BIRTH | May 16, 1923 |
| PLACE OF BIRTH | Boston, Massachusetts |
| DATE OF DEATH | June 3, 2000 |
| PLACE OF DEATH | Chicago, Illinois |
