Miller, Merton (1923–2000)
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.
KeywordsAmerican 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
I am grateful for comments from Harry DeAngelo, Linda DeAngelo, Steven Durlauf and Andrew Karolyi.