Angus Deaton of Britain and the United States won the Nobel Economics Prize on Monday for his work on consumption, poverty and welfare, the jury said.
"By emphasising the links between individual consumption decisions and outcomes for the whole economy, his work has helped transform modern microeconomics, macroeconomics and development economics," the Royal Swedish Academy of Sciences said.
"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," it said.
Deaton was honoured for three related achievements: for developing with his colleague John Muellbauer around 1980 a system for estimating the demand for different goods; studies of the link between consumption and income that he conducted around 1990; and the work he carried out in later decades on measuring living standards and poverty in developing countries with the help of household surveys.
His research has shown how the clever use of household data can shed light on issues such as the relationship between income and calorie intake, and the extent of gender discrimination with the family.
"Deaton's focus on 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 Academy said.
- Optimist economist -