Saturday, November 07, 2015

How Angus Deaton won his Nobel prize for Economics

I had some great teachers while reading Economics at the Universities of Bristol where I took my first degree and East Anglia where I took a Masters (and met a certain Iain Dale).

But probably the best was Professor Angus Deaton so I was really chuffed when it was announced last month that he had won the Nobel Prize for Economics.

There is a great article in the Economist on the work which won him that prize at

http://www.economist.com/news/finance-and-economics/21674436-angus-deaton-wins-nobel-prize-bringing-economics-back-real

Here is a taster:

'Deaton offers three lessons to aspiring economists.

First, the theory should tally with the data—but if not, then do not despair. Puzzles and inconsistencies help to prompt innovation.

Second, the average is rarely good enough. It is only by understanding differences between people that we can understand the whole.

Finally, measurement matters. In the words of Mr Deaton, “progress cannot be coherently discussed without definitions and supporting evidence”.

In the words of Mr Muellbauer, Mr Deaton’s win is “a triumph for evidence-based economics”.'

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