Cloth $92.00 ISBN: 9780226527482 Published June 2002

Selected Works of Merton H. Miller: A Celebration of Markets

Volume 2: Economics

Merton H. Miller

Selected Works of Merton H. Miller: A Celebration of Markets

Merton H. Miller

Edited by Bruce D. Grundy
813 pages | 28 line drawings, 35 tables | 6 x 9 | © 2002
Cloth $92.00 ISBN: 9780226527482 Published June 2002
Widely regarded as one of the founders of modern corporate finance, Merton H. Miller was awarded a Nobel Prize in 1990 for his work in the theory of finance and financial economics. Selected Works of Merton H. Miller gathers together in two volumes a selection of Miller's most influential contributions over more than fifty years of active research. A common theme running throughout both volumes is Miller's conviction about the utility of market-based approaches to topics as diverse as dividend policy, bank regulation, the structure of securities markets, and competition between research universities and teaching colleges.

Miller was perhaps best known for a series of highly influential papers he cowrote in the 1950s and 1960s with fellow Nobel laureate Franco Modigliani that advanced a set of capital structure theorems later dubbed the "M and M propositions." In brief, the M and M propositions state that the actions of investors, firms, and capital markets will cause the market value of a firm to be independent of its capital structure. In other words, a corporation's value depends on its investments in people, ideas, and physical capital goods and not on the mix of bonds, stocks, and other securities used to finance the investments. Four of these papers are reprinted here, together with important later work by Miller in macroeconomics, corporate capital structure, management science, asset pricing, and the economic and regulatory problems of the financial services industry.

Diverse and innovative, the papers in Selected Works of Merton H. Miller will interest students and practitioners of economics, finance, and business, as well as policymakers responsible for market regulation.
Part IV - Further Insights and Applications of the M and M Propositions
17. The Modigliani-Miller Propositions after Thirty Years
18. The Economics of the Winstar Cases
(with David J. Ross)
Part V - Asset Pricing
19. Decreasing Average Cost and the Theory of Railroad Rates
20. Rates of Return in Relation to Risk: A Re-examination of Some Recent Findings (with Myron S. Scholes)
21. Prices for State-Contingent Claims: Some Estimates and Applications (with Rolf W. Banz)
22. A Test of the Hotelling Valuation Principle (with Charles W. Upton)
Part VI - Capital Market Structure and Regulation
23. Strategies for Capital Market Structure and Regulation (with Charles W. Upton)
24. An Approach to the Regulation of Bank Holding Companies (with Fischer Black and Richard A. Posner)
25. Liquidity and Market Structure (with Stanford J. Grossman)
26. Margin Regulation and Stock Market Volatility (with David A. Hsieh)
27. Clustering and Competition in Asset Markets (with Sanford J. Grossman, Kenneth R. Cone, Daniel R. Fischel, and David J. Ross)
Part VII - The Macro Contribution
28. The Burden of the Debt, Chapter 8 of Macroeconomics: A Neoclassical Introduction (with Charles W. Upton)
29. Built-in Flexibility (with Richard A. Musgrave)
30. A Model of the Demand for Money by Firms (with Daniel Orr)
Part VIII - The Market for Ideas
31. How Much University Research Is Enough? Convocation Speech, University of Chicago, August 28, 1992
Publications of Merton H. Miller
Author Index
Subject Index
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