European Stars and Stripes (Newspaper) - October 16, 1985, Darmstadt, Hesse Page 8 the stars and stripes wednesday october 16, 1985 american finance theorist wins Nobel economics prize in Virld today Stockholm Sweden a Franco Modigliani of the Massachusetts Institute of technology who is credited with pioneering theories of personal finance including How people save for old age tuesday was awarded the 1985 Nobel pric in economics. Modigliani s work explains what we Sec and helps us understand the professor Assar Lindbeck a member of the pric com Millic said after theaward was announced. The Royal swedish Academy of sciences which made the award said Modigliani 67, developed a life Cycle hypothesis of household saving and formulated theorems used to deter mine the Market values of firms and capital costs. I obviously am very pleased Modigliani said tuesday morning by Telephone from his Belmont mass., Home. It s always Nice to hear that the work i be done is appreciated and regarded As Modigliani was born in Italy and is now an american Citi zen. His savings theories worked out in the 1950s with a Stu Dent the late Richard Brumberg helped demonstrate How people reduced their efforts to save for their old age when Able to count on improved pensions. The Academy said the life Cycle hypothesis proved to be an Ideal tool for analyses of the effects of different pension sys most such analyses it said have indicated that the introduction of a general pension system leads to a decline in Pri vate saving a conclusion in full agreement with the Modigliani Brumberg these achievements arc important contributions to eco nomic science the Academy said. Theories Modigliani developed in cooperation with col league Morton Miller also in the 1950s, dealt More with corporate finance. The Academy said they have had important implications for the theory of investment decisions. They represent a decisive breakthrough for the theory of corporate finance the Academy said. Lindbeck said the Modigliani Miller theory showed a company manager should not maximize annual profits but maximize the value of shares on the Stock the announcement marked the 13th time in 17 years that an american has won or shared the pric. Modigliani said he Learned he had won the prize in a Tele phone Call from Sweden. Asked if he was surprised by winning the prize Modigliani said Well yes in a sense it was not something that was completely inconceivable but you never american theorists have dominated the economics prize known As the Alfred Nobel memorial prize in economics Ever since it was started in 1969 by Sweden s Central Bank the Rik Bank. Among previous amc1 can winners were Milton Friedman in 1976 and Paul Samuelson in 1970, two of the United Stales most influential postwar economists. Franco Modigliani Modigliani was born in Rome in 1918. He received a doctorate in jurisprudence from the University of Rome in 1939 and a doctorate in social science from the new school for social research in new York in 1944. He holds a honorary degrees. He said became to the United states in 1939 with his wife after fleeing the fascist regime of Benito Mussolini. He taught at Bard College the new Jersey College for women the new school for social research the University of Illinois Carnegie Mellon University and Northwestern University before going to Mit in 1962. The economics prize was established in memory of swedish dynamite inventor Alfred Nobel who established the Nobel peace prize and other awards in his 1895 will. All the awards including the memorial economics prize carry a Cash award this year set at 1.8 million swedish Kronor about $225,000. The prizes arc awarded in Oslo Norway and in Stockholm on dec. 10, the anniversary of Nobel a death in 1896. Nobel officials in Oslo last week said this year s peace pric had been won by an International organization of doctors opposing nuclear a. The Nobel Medicine prize was won monday by two Ameri can doctors credited with pioneering research into Choc Sterol Rda cd illness. Nobel prizes in physics and chemistry arc to be announced in Stockholm wednesday. The Nobel literature prize Winner for 1985 is to be announced in Stockholm thursday. Of. Lawrence Seaway traffic halted after lock Wall caves in Thorold Ontario a an Accident in the Welland canal which links lakes Erie and Ontario and bypasses Niagara Falls has blocked traffic through the St. Lawrence Seaway causing what officials say could be a major blow to shipping. The Welland canal was blocked monday when a 125-foot Section of a lock Wall caved in on a Grain freighter that was passing through pinning the ship to the Side of the lock. The liberian registered Furia which was eastbound was moved from the damaged 80-fool-Decp lock monday night after Seaway officials refilled it. We be got to look at the problem and with our engineers see what we can do said Malcolm Campbell vice president of the Western Region of the St. Lawrence Seaway authority. It s especially a problem now because people Are trying to finish up their shipping season John Hanieski chairman of the Detroit Wayne county port authority said in Detroit. Ice on the St. Lawrence Seaway the shipping route from the great lakes to the Atlantic normally stops traffic by january. You be got people laying in inventories in anticipation of the Seaway being closed in Winter Hanieski said. You be got the Harvest season on the wheat pretty much concluded in the Northern great lakes area so you be got the elevators wanting to move the product out to their customers. It s going to slow Down the movement of a lot of steel into c. Thomas Burke director of the Cleveland Cuya hoga county port authority agreed. We were expecting 40 ships in before the close of the shipping season on dec. 15, and now they arc bottled up he said. Lock no 7, where the Cave in , was built in 1932, Campbell said adding the Concrete has aged consider ably. "1 talked with the Captain and he said it was As if the vessel had run aground hard he said. He said he could not estimate How Long the Seaway would be closed but added it s a major problem and it s going to take Campbell said that it was a particularly bad time for the Accident to happen. We Haven t had a very Good year and then demand for Grain increased he said. We be noticed a buildup of traffic in the last few Hanieski said delay s would be expensive. It costs $30.000 an hour to have a ship inactive and that really motivates you to do things he said. No injuries were reported in the Accident. Seven westbound and two Casebound ships were already in the canal their movement blocked by the Furia and six ships were anchored in Luke Ontario awaiting passage Campbel said. With this canal being stopped no vessels Are going to get up into the upper great lakes he said. A year ago a Bridge Shaft across the Seaway broke at Valleyfield Quebec trapping 165 ships in the waterway and slopping traffic for 18 Days. Soviets take first second place in International violin contest i Noa. Italy Dpi Soi ice violinists won first and second places in the 32nd International Nicolo Paganini violin Competition. Dmitri by Linskiy was judged Best of the six finalists All from Liuro pc who performed works by Dvorak and Beethoven with the Genoa opera House orchestra in the Catro Margherita. Second place went to fellow soviet Marc to Shilcoski third place to Gabriel Croitoru of Romania fourth place jointly to Angulina Abadjieva of Bulgaria and Anton Kolod Cynko of the soviet Union and sixth place to Thomas Boucher of East Germany. South Africa restaurant claims record with 2-ton hamburger Cape town South Africa up a Cape town restaurant has claimed a world record for a hamburger that weighed 4,454.1 pounds and fed 15,000 people. The thing As the monster Burger was known among the staff of the restaurant was cooked Over an open flame and was flipped Over by an Industrial Crane while wedged into a Metal Frame. It was cooked for 20 minutes on each Side and was basted with a special Barbecue sauce with mops. Cargo of lumber poses Hazard to ships after freighter sinks , Australia a More than 600 tons of Tim Ber posed a Hazard to ships off the coast of new South Wates following the sinking of the Singapore freighter Hoe Lien. Authorities said the beams were wired together in Sticks which could Knock a Hole in a vessel. The hoc Lien Sank about 20 Miles off Newcastle 74 Miles North of Sydney while under Tow. The badly listing vessel had been evacuated after its deck cargo shifted in High seas. Greece to approve legislation for Church property takeover Athens Greece up the socialist government says it will pass legislation for the takeover by the state of hundreds of thousands of acres of Church monastic prop erty the official Athens news Agency Ana reported. An announcement Saio the takeover measure was Long overdue and consistent with our election manifesto to hand monastic property Over to Farmers and society As a it said estates owned by monasteries would be taken Over without compensation for this action constitutes the immediate settlement of a Long standing popular de attendance at concert to Aid Ethiopia below expectations Courne Uve France a an estimated 12,000 to 15,000 people gathered in this Paris suburb for a sing ers without frontiers concert to raise Money for starving ethiopians far below expectations of the concert s organizers who had hoped to sell 150,000 tickets at $15 each. I m a Little disappointed conceded French Singer re Naud organizer of the concert. He who Dies today will also die tomorrow. You cannot in any Case Tell yourself i already gave " Renaud wrote the lyrics for the song sos for Ethiopia which was recorded by 36 French singers and Acton some of a
