Planning Production, Inventories, and Work Force.

MODIGLIANI, Franco; Charles C. Holt; John F. Muth; Herbert A. Simon [Kenneth A. Arrow].

$975.00

Item Number: 15053

Englewood Cliffs, NJ: Prentice-Hall, 1960.

First edition of collection of essays, from the library of Nobel Prize-winning economist Kenneth Arrow, with his signature to the front free endpaper. Octavo, original cloth. Fine in a very good dust jacket.

Along with Merton Miller, Franco Modigliani formulated the important Modigliani–Miller theorem in corporate finance (1958). This theorem demonstrated that under certain assumptions, the value of a firm is not affected by whether it is financed by equity (selling shares) or debt (borrowing money). He was also the originator of the life-cycle hypothesis, which attempts to explain the level of saving in the economy. Modigliani proposed that consumers would aim for a stable level of consumption throughout their lifetime, for example by saving during their working years and spending during their retirement.