The final economics Nobel Prize 2015 was announced by Goran K. Hansson, secretary of the Royal Swedish Academy of Sciences in Stockholm. The Sveriges Riksbank, Sweden’s central bank, established the prize in 1968 to honor the memory of Alfred Nobel.
The 2015 Nobel Prize in Economic Sciences won by Angus Deaton for his analysis of consumption, poverty and welfare. Unlike those in other sciences and areas, the economics award is a collaboration between the Sveriges Riksbank and the Nobel Foundation. The award glorifies economists as tellers of timeless truths, fostering hubris and leading to disaster. Angus Deaton has helped to “transform the fields of microeconomics, macroeconomics, and development economics”, say the Committee, by linking detailed individual choices and aggregate outcomes.
Deaton, 69, was born in 1945 in Edinburgh, Scotland. He holds both U.S. and British citizenship. He worked at Princeton since the early 1980s where he researches health, wellbeing, and economic development. His accomplishments include creating, along with John Muelbauer, the Almost Ideal Demand System in 1980, in which they opened a new door in researching consumer behavior. He is the Dwight D Eisenhower professor of economics and international affairs at the Woodrow Wilson School of Public and International Affairs at Princeton. He is perhaps best well known for the Deaton Paradox — which explains that consumption varies surprisingly smoothly despite sharp variations in income.
The Nobel Committee asked the following 3 Questions to Angus Deaton -
1> How do consumers distribute their spending among different goods?
2> How much of society’s income is spent and how much is saved?
3> How do we best measure and analyze welfare and poverty?
Deaton is being hailed for his academic work on the links between consumption and income – and how public policy changes can affect rich and poor. His use of household surveys has helped transform development economics from a theoretical field based on aggregate data to an empirical field based on detailed individual data, the committee said.
The prize is given to Angus who has made a substantial contribution towards the subject, with an award of 10 million Swedish krona ($US1.22 million, £797,330).