2015 Economics Nobel Prize goes to economist Angus Deaton

British-born economist Angus Deaton of Princeton University answers questions in a news conference after winning the 2015 economics Nobel Prize on the Princeton University campus in Princeton, New Jersey October 12, 2015. Deaton has won the 2015 economics Nobel Prize for his work on consumption, poverty and welfare that has helped governments to improve policy through tools such as household surveys and tax changes. The Royal Swedish Academy of Sciences said the microeconomist's work had been a major influence on policy making, helping for example to determine how different social groups are affected by specific changes in taxation. Reuters/Dominick Reuter

Economist Angus Deaton has received the Nobel Prize for Economics in 2015 for his contribution to consumption, poverty and welfare research works. His findings have helped the government to enhance policy-making process by implementing tools like tax changes and household surveys.

The 69-year-old economist fostered conduction of household surveys in developing nations with acute focus on consumption related data to make it easier to measure living standards of people and calculate the level of poverty surrounding the nation, the Royal Swedish Academy of Sciences said. It also said that the British-born scientist took interest in studying varied social groups to determine to what extent they are affected by certain changes in taxation from time-to-time.

“To design economic policy that promotes welfare and reduces poverty, we must first understand individual consumption choices,” the academy put forth the idea that Deaton always advocated. Unlike others, Deaton always looked at economic development from the point of view of consumption and not income, economics professor at George Mason University, Tyler Cowen, said.

“Think of Deaton as an economist who looks more closely at what poor households consume to get a better sense of their living standards and possible paths for economic development, ” Cowen wrote on his blog “ Marginal Revolution.”

Deaton said that the extreme poverty level has deteriorated significantly in the past few years and it is expected to continue, the scientist claimed in his first public comment after winning the prestigious prize. “While I expect things to get better, you have to keep remembering that we are not out of the woods yet and that for many, many people in the world, things are very bad indeed, ” Deaton addressed a telephonic press conference.

He concluded by indicating his concern about the development of a world that has given the rich the right to formulate rules.

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