Ersin Arslan / Stockholm, Oct 12 () – British economist Angus Deaton won the 2015 Nobel Prize in economics, announced on Oct. 12.
Professor at Princeton University, Deaton was awarded for his works in "analysis of consumption, poverty, and welfare" said the announcement of Nobel Committee.
The British economist, 70-year-old Deaton, born in Edinburgh, Scotland, is best known for his his work on health, wellbeing and economic development.
The 'Almost Ideal Demand System' at a glance
“In his early work around 1980, Deaton developed the Almost Ideal Demand System – a flexible, yet simple, way of estimating how the demand for each good depends on the prices of all goods and on individual incomes” said the announcement, which underlined Deaton’s approach and its later modifications have become standard tools nowadays, both in academia and in practical policy evaluation.
The statement added Deaton has showed that the prevailing consumption theory could not explain the actual relationships if the starting point was aggregate income and consumption. According to the economists’ approach, “one should, instead, sum up how individuals adapt their own consumption to their individual income, which fluctuates in a very different way to aggregate income.”