Franco Modigliani’s research while affiliated with Carnegie Institute and other places

... Modigliani (1986) proposed that life-cycle hypothesis is displayed in hump-shaped, where positive saving appears in working family and negative savings for retired families. The working people tends to save more to maintain their consumption levels during retirement (Jappelli & Modigliani, 1998), whereas old and young age dependency be apt to spend more than save. Likewise, the growth in dependency ratio will urge to reduce in national savings but raise in domestic expenses. ...

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Current Account Imbalances in Asia’s Countries: The Contributing Elements

... Questo è ulteriormente diminuito nel periodo più recente, in cui un ulteriore drenaggio dell'investimento è derivato dalla progressiva internazionalizzazione delle attività produttive (per cui l'Italia è divenuta investitrice netta), mentre in direzione opposta va il passaggio di una quota crescente di debito pubblico presso investitori esteri. 8 Il rallentamento della produttività era stato segnalato come motivo della caduta del tasso di risparmio nazionale già da Modigliani e Jappelli (1990). Alla fine del 2009, le famiglie italiane risultavano impoverite in termini di potere d'acquisto per abitante rispetto al 2000 e, stante la forma (ad alta intensità di lavoro a bassa produttività) della crescita degli anni precedenti, ancora di più in termini di potere d'acquisto per occupato. ...

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Risparmio e ricchezza delle famiglie italiane. Tendenze, allocazione, prospettive

... Some observers, reminded of the old adage "the more things change, the more they remain the same," began to suspect that the similarities between the Southern-Cone and the heterodox programs were not purely coincidental. In particular, Kiguel and Liviatan (1990) dug up older 1/ The Southern-Cone programs--which comprise the stabilization plans in Argentina, Chile, and Uruguay--have been discussed, among many others, by Harberger (1982), Corbo (1985), Fernandez (1985), Hanson and de Melo (1985), Calvo (1986a), Ramos (1986), Edwards and Edwards (1987), Kiguel and Liviatan (1988), and Sjaastad (1989). ...

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Credibility and the Dynamics of Stabilization Policy: A Basic Framework

... In addition, by acting in defense of the interests of the less favored parties, such institutions guarantee protection to minority shareholders against privileged information held by more informed shareholders or managers through property rights and countermeasures against the powerful elite. This logic can also be extended to safeguarding the interests of creditors against the risks of expropriation and asymmetric information and protecting depositors and borrowers against monopoly power (Modigliani & Perotti, 1997;Ewert & Wagenhofer, 2011). ...

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Institutions and financial development: Comparative analysis of developed and developing economies

... Nevertheless, the size of the impact on consumption depends on different factors. In particular, Modigliani (1987) states that it will respond to the source of change in the deficit, which might in turn have an effect on the difference the two types of deficits have on consumption. In addition, in the short run, larger deficits are likely to lead to higher demand and higher output, while in the long run, according to the classical view, the response in consumption may be negative, given that higher government debt has a negative effect on capital accumulation. ...

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El rol del sector público subnacional en la función de estabilización: Evidencia desde el caso colombiano en el periodo 1990-2001

... As for per capita income, Keynes postulates that consumption and, therefore, saving are linearly related to it. Even within the LCM framework, Modigliani (1993) argues that in low income countries it is current income rather than lifetime income that plays an important role in determining saving. ...

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What determines private and household savings in India?

... Fairley (1979) applied the CAPM to derive risk-adjusted rates of return for property-liability insurers. Important extensions of the Fairley model by Myers and Cohn (1987) and Hill and Modigliani (1987) provide empirical evidence on its reliability and stability. 5 Bronars (1985), Beenstock and Brasse (1986), and Blake and Beenstock (1988) took up the CAPM-based framework to study unemployment insurance with different focuses. ...

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Pricing Unemployment Insurance – An Unemployment-Duration-Adjusted Approach

... Phelps (1972) also used this term in order to explain the reasons for soaring unemployment level in Europe over the post-1960s and Sachs (1986) ranged some possible effects of hysteresis on policy regimes. According to the traditional wisdom (e.g., Phelps, 1968;Friedman, 1968;Modigliani, 2003), the current deviation in unemployment rate in Europe was defined as temporary, which were theorized by the concept of non-accelerating inflation rate of unemployment (NAIRU). On the contrary, Blanchard and Summers (1986b) pointed to the existence of path-dependence of steady-state equilibrium unemployment through defining the hysteresis hypothesis. ...

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Unemployment Hysteresis: Attached or Mismatched?

... of the transition would be substantially reduced if the payroll tax reduction induces positive effects on labour productivity and employment. If the unemployment rate is gradually reduced to a half of its current level and labour productivity growth is 0.5% higher each year, in the first scenario the impact on the budget would be positive by 2025. Modigliani and Ceprini (1998) take a different approach and suggest a gradual transition to a fully funded system. They suggest the creation of a new fund financed by an additional contribution of 2% of earnings. Workers would receive the same pension benefits paid by the PAYG schemes. The fund would gradually pay an increasing part of these benefits allowing a redu ...

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Italy: The Search for a Sustainable PAYG Pension System

... In a similar vein, according to Modigliani and Brumberg's LCH, the consumer's consumption is not simply based on their current income, but on their expected lifelong income. In this context, LCH stresses the life stage sensitivity of consumption; that is, people spend more than their current income when they are out of the labor force and spend less than their current income when they are working (Modigliani & Bartel, 1987). To put it another way, people generally save when they are working and dissave when they are not. ...

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Investigation of Turkish Tourism Sectors’ Financial Performance by Vertical Analysis Method: A Research on BIST Tourism Companies and CBRT Company Accounts (Türk Turizm Sektörünün Finansal Performansının Dikey Analiz Yöntemiyle İncelenmesi: BİST Turizm Şirketleri ve TCMB Sektör Bilançoları Üzerinde Bir Araştırma)