The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Miller, Merton (1923–2000)

  • René M. Stulz
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2606

Abstract

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.

Keywords

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 

JEL Classifications

B31 
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Notes

Acknowledgment

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

Bibliography

  1. Grundy, B. 2001. M. H. Miller: His contributions to financial economics. Journal of Finance 56: 1183–1206.CrossRefGoogle Scholar
  2. Jensen, M., and W. Meckling. 1976. Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics 3: 305–360.CrossRefGoogle Scholar
  3. Stulz, R. 2000. Merton Miller and modern finance. Financial Management 29: 119–131.CrossRefGoogle Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • René M. Stulz
    • 1
  1. 1.