Merton Miller

Merton Howard Miller (May 16, 1923 – June 3, 2000) was an American economist and professor whose foundational work in corporate finance revolutionized the understanding of capital structure and dividend policy in perfect markets. He is best known for co-developing the Modigliani–Miller theorem with Franco Modigliani, which posits that, under certain assumptions, a firm's value is independent of its financing decisions. For these and related pioneering contributions to the theory of financial economics, Miller shared the 1990 Sveriges Riksbank Prize in Economic Sciences with Harry Markowitz and William Sharpe.

Born in Boston, Massachusetts, as the only child of attorney Joel Miller and his wife Sylvia, Miller earned his A.B. magna cum laude from Harvard University in 1943 after just three years of study. During World War II, he served as an economist in the Division of Tax Research at the U.S. Treasury Department and later at the Federal Reserve Board. After the war, he pursued graduate studies, spending a year at the London School of Economics as a Fulbright Scholar before completing his Ph.D. in economics at Johns Hopkins University in 1952.

The Millers were part of Boston's Jewish community, with roots in immigrant Jewish traditions from Eastern Europe that strongly emphasized education as a pathway to opportunity. Joel and Sylvia, themselves immigrants or immediate descendants of immigrants, instilled in their son the value of learning and intellectual pursuit, reflecting the broader ethos of many such families seeking stability in America. This cultural backdrop shaped Miller's formative environment, fostering a disciplined approach to knowledge from a young age.

Growing up in Boston's vibrant Jewish community, Miller was exposed to discussions on business and law through his father's professional life, which sparked his early curiosity about economic matters. These family conversations, often centered on legal and financial topics, provided an informal introduction to concepts that would later define his career. This foundation transitioned into his formal education at Harvard University in 1940.