| Popis: |
In a recent article in this journal, Luigi L. Pasinetti not only reminded us of the role played by the Modigliani–Miller (MM) theorem in the current crisis but also provided a critique based on examining its underlying assumptions. In this note, I extend his critique as it applies to one component of the theorem—namely, the dividend invariance proposition—by demonstrating that its conclusions cannot follow from its assumptions. There has been a 'logical slip'. Copyright , Oxford University Press. |
