The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Miller, Merton (1923–2000)

  • René M. Stulz
Reference work entry


Merton Miller was at the centre of the transformation of academic finance from a descriptive field to a science. His principal contribution to this transformation was the introduction of arbitrage arguments which underlie most theoretical contributions in finance and remain central to the way financial economists analyse finance problems to this day. These arbitrage arguments underlie his and Franco Modigliani’s famous irrelevance propositions.


American Finance Association Arbitrage Bankruptcy costs Capital gains taxation Capital structure Contracting costs Corporate bonds Corporate debt Corporate finance Dividend policy Financial markets Interest rates Rrrelevance propositions Miller, M. MM irrelevance propositions Modigliani, F. Risk Tax subsidy Tax shield Taxation of corporate profits 

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I am grateful for comments from Harry DeAngelo, Linda DeAngelo, Steven Durlauf and Andrew Karolyi.


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  3. Stulz, R. 2000. Merton Miller and modern finance. Financial Management 29: 119–131.CrossRefGoogle Scholar

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • René M. Stulz
    • 1
  1. 1.