Selected Works of Merton H Miller or The Organization of Industry

Selected Works of Merton H. Miller: Finance, Vol. 1

Author: Merton H Miller

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 formarket regulation.

Table of Contents:

Volume 1	Finance
	Foreword	ix
	Foreword	xiii
	Preface	xv
Part I	The Classics
1	The Cost of Capital, Corporation Finance and the Theory of Investment	3
2	Dividend Policy, Growth and the Valuation of Shares	42
3	Corporate Income Taxes and the Cost of Capital: A Correction	73
4	Reply to Heins and Sprenkle	85
5	Debt and Taxes	91
6	Leverage: Nobel Lecture, December 7, 1990	109
Part II	Corporate Decision Making: Financing, Investment and Incentives
7	Extension of the Model to Durable Commodities, Production, and Corporations, Chapter 2 of The Theory of Finance	123
8	Financing Decisions, Investment Decisions, and the Cost of Capital, Chapter 4 of The Theory of Finance	172
9	Application of Linear Programming to Financial Budgeting and the Costing of Funds	216
10	Executive Compensation, Taxes, and Incentives	254
11	Is American Corporate Governance Fatally Flawed?	279
Part III	Distribution Policy in Competitive Markets
12	The Informational Content of Dividends	295
13	Dividends and Taxes	316
14	Dividends and Taxes: Some Empirical Evidence	350
15	Dividend Policy under Asymmetric Information	374
16	Behavioral Rationality in Finance: The Case of Dividends	399
	Author Index	xxiv
	Subject Index	xxxv
Volume 2	Economics
Part IV	Further Insights and Applications of the M and M Propositions
17	The Modigliani-Miller Propositions after Thirty Years	421
18	The Economics of the Winstar Cases	448
Part V	Asset Pricing
19	Decreasing Average Cost and the Theory of Railroad Rates	481
20	Rates of Return in Relation to Risk: A Re-examination of Some Recent Findings	499
21	Prices for State-Contingent Claims: Some Estimates and Applications	527
22	A Test of the Hotelling Valuation Principle	548
Part VI	Capital Market Structure and Regulation
23	Strategies for Capital Market Structure and Regulation	575
24	An Approach to the Regulation of Bank Holding Companies	610
25	Liquidity and Market Structure	646
26	Margin Regulation and Stock Market Volatility	667
27	Clustering and Competition in Asset Markets	698
Part VII	The Macro Contribution
28	The Burden of the Debt, Chapter 8 of Macroeconomics: A Neoclassical Introduction	739
29	Built-in Flexibility	758
30	A Model of the Demand for Money by Firms	766
Part VIII	The Market for Ideas
31	How Much University Research Is Enough? Convocation Speech, University of Chicago, August 28, 1992	791
	Publications of Merton H. Miller	795
	Author Index	ix
	Subject Index	xv

Book review: The Revolution or Blackwater

The Organization of Industry

Author: George J Joseph Stigler

The Organization of Industry collects essays written over two decades-pieces prepared especially for this volume, previously unpublished material, and reprinted articled drawn from numerous sources, many of which include additional commentary by the author. The essays are unified by George J. Stigler's careful analysis and by clear and witty style.