The Economics Nobel Prize for showing great work in analysis of consumption, poverty, and welfare was conferred to Angus Deaton on October 12.
Deaton majorly worked on the low calorie consumption in Indian children and how it is linked to poverty. He also concluded how failure in widespread growth was a human development disaster which reflects in early life nutrition that helps brains to grow.
After spending a lot of time in India, Deaton proposed an ingenious way of using household consumption data to indirectly estimate whether daughters are given less than sons. He also investigated whether the consumption of adult goods like clothes, tobacco, or alcohol decreases when the family has children, and whether this reduction is greater when the child is a boy rather than a girl.
Deaton who now teaches at Princeton University, in the year 1980, created a model of an ideal Demand System, a flexible yet simple way of estimating how the demand for each item depends on the prices of all goods and on individual incomes.
The Royal Swedish Academy of Sciences said the British-born 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.
His contribution in terms of research and creating models of development is vital not only for India but for the world at the large. We wish he continues his great work for the welfare of humanity.