Angus Deaton wins Nobel Memorial Prize in Economics
Scottish microeconomist Angus Deaton has been awarded the Nobel Memorial Prize in Economics “for his analysis of consumption, poverty, and welfare”, the Royal Swedish Academy of Sciences announced today.
Deaton’s work centers around three core teams, the impact of policy measures on consumer spending patterns, the balance between consumption and saving patterns and how to measure welfare and poverty.
“To design economic policy that promotes welfare and reduces poverty, we must first understand individual consumption choices. More than anyone else, Angus Deaton has enhanced this understanding. By linking detailed individual choices and aggregate outcomes, his research has helped transform the fields of microeconomics, macroeconomics, and development economics” the Royal Swedish Academy of Sciences stated.
One of his most famous economic contributions is the “Deaton Paradox”, which analyses why variations in consumption can be relatively smooth, despite unanticipated income shocks.
Deaton is currently Dwight D. Eisenhower professor of Economics and International Affairs at the Woodrow Wilson School of Public and International Affairs and the Economics Department at Princeton University.
The Nobel Memorial Prize in Economics is awarded by Sveriges Riksbank in collaboration with the Royal Swedish Academy of Sciences on an annual basis.