"In the early 1950s Franco Modigliani, with Richard Brumberg and , formulated the life-cycle theory of consumption and savings that enjoyed a huge and undisputed success for at least three decades. It replaced Keynes’s ‘fundamental psychological law’ of savings, according to which the marginal and average propensities to save grow as income rises. On the other hand, the life-cycle theory maintains that the level of savings depends on the age of consumers, and hence on the demographic structure of society rather than on the level of family income."
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JewsPeople from RomeEconomists from the United StatesNobel laureates in EconomicsEconomists from Italy
Original Language: English
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, "Modigliani's life-cycle theory of savings fifty years later." PSL Quarterly Review (2012).
https://en.wikiquote.org/wiki/Franco_Modigliani
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Franco Modigliani
Franco Modigliani (June 18, 1918 – September 25, 2003) was an Italian-born American economist and professor at the and MIT Department of Economics, who won the in 1985.
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