Franco Modigliani and the life-cycle theory of consumption

Angus Deaton

Banca Nazionale del Lavoro Quarterly Review, 2005, vol. 58, issue 233-234, 91-107

Abstract: This paper reviews and discusses the contribution by Franco Modigliani to macroeconomic model building for economist forecasting and policy making. As Paul Samuelson observed, Modigliani's theoretical work was fundamental in the development of the basic framework within which the "post-Keynesian eclecticism" of the later twentieth century developed. In the move from theory to practice two aspects of Modigliani's work are considered: 1) the systemic approach that focuses on the relationship between the short and the long term, 2) the special reference to the mechanism of monetary policy transmission in the use of the macroeconomic model for economic stabilisation policy. What is left today of this contribution is finally briefly discussed, also with reference to some recent proposals on macroeconomic model building.

Keywords: Consumption; Life Cycle; Macroeconomics (search for similar items in EconPapers)
JEL-codes: B21 B22 B31 D91 E21 (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (68)

Downloads: (external link)
http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/9845/9730 (application/pdf)

Related works:
Journal Article: Franco Modigliani and the life-cycle theory of consumption (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:psl:bnlqrr:2005:28

Ordering information: This journal article can be ordered from
http://www.economiacivile.it

Access Statistics for this article

Banca Nazionale del Lavoro Quarterly Review is currently edited by Alessandro Roncaglia

More articles in Banca Nazionale del Lavoro Quarterly Review from Banca Nazionale del Lavoro
Bibliographic data for series maintained by Carlo D'Ippoliti ().