The Later Years of Franco Modigliani

Abstract

The Later Years of Franco Modigliani Following his most productive years at the Carnegie Institute of Technology, Modigliani moved to one of the other two prestigious institutes of technology, the Massachusetts Institute of Technology (MIT), to which he moved in 1960. He was to remain there for the rest of his career. At MIT, he continued his work on the business cycle, rational expectations, personal finance, and the financial valuation of firms that he had first addressed with Merton Miller. There, Modigliani also remained very innovative and open to new research techniques. Early in the introduction of computational methods to finance, Modigliani helped develop some of the first large-scale econometric models of the United States economy. These tools were continued by the National Bureau of Economic Research and the United States Federal Reserve. Modigliani resided at MIT when he heard he had won the Nobel Prize in Economics Sciences.