5 Points About The Nobel Prize In Economics!

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#1. At the Royal Swedish Academy of Science, in Stockholm, Sweden, Professor Angus Deaton has been awarded with the most prestigious award on this planet, the Nobel Prize. He has been recognised for his work in Economics that deals with “consumption and the way poverty is measured, typically in India.” Educated at Cambridge University, he is presently a professor at Princeton University.

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#2. The exact theory of his research and study is that despite of huge growth, why poverty reduction has been so little. He has written about India that although the 1991 economic reforms had widespread positive ramifications in the growth of nation, its effect of poverty still remains controversial. Some of his extensive works in India are:
“Health Care and Delivery in Rural Rajasthan” with Abhijit Bannerjee and Esther Duflo.
“Food and Nutrition in India:Facts and Interpretations”, co-authored with Jean Dreze.

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#3. Deaton’s research has brought transformations in microeconomics, macroeconomics and development economics, which lays emphasis on data of individuals. The prestigious magazine “The Economist” says that “Angus Deaton wins the Nobel prize for bringing economics back to the real world”. It also said that ‘generally economists used simple models that made rigid assumptions about people’s consumption patterns. But upon closer inspection, it turned out that the assumptions in these models were inconsistent with real-life data on how people respond to changes in prices.’

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#4. Deaton paradox claimed that income should be smoother than consumption, which was his microeconomic theory based on empirical observations. His innovation is completely based on evidence based economics. All this will have great effect on policy making and taxation. His work “The Great Escape; Health, Wealth and the Origins of Inequality”, insists on inequalities created by medical and technological advances.

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#5. His prominent work were based on two technical issues. One of them was Almost Ideal Demand System (AIDS), and the other was Deaton paradox. He urges on empiricism and individualism. According to him, the standard of living of different people in different places vary greatly, and do not change as swiftly as the financial markets. Deacon is highly critical of foreign aid which he claims to be counterproductive, useless and unmatchable to empirical reality. The Scottish-born economist received Swedish kronor (SEK) 8.0 million as prize money for Nobel Prize in Economics.

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