Angus Deaton got the Nobel Prize for his “analysis of consumption, poverty and welfare”. Deaton is a British-born professor of international affairs and economics at Princeton University. He developed a great framework that can help estimate how taxes can disproportionally influence on poor households and the spending power and consumption of wealthy. A lot of professors, like Jessie Handbury, have such attitude towards Deaton’s ideas. Ann Harrison, professor of business and economics, considered him as a great scholar, whose work can increase consumer well-being and utility.
Now, he is focusing his work on the determinants in poor and rich countries, the same as on the measurement of poverty around the world. The Royal Swedish Academy appreciates the import of Angus researches, because his work became one of the main factors that has helped to change the fields of macroeconomics, microeconomics and development economics. Moreover, the Academy is grateful for Deaton’s contributions in three very important questions. First of all, Angus Deaton demonstrated a way of estimating how the demand of every good is connected with the prices of all goods and individual incomes. Second of all, he showed how individuals adapt their goods consumption to income they have, which fluctuates in a very different way to aggregate income. Thirdly, Deaton disclosed vital pitfalls when he was comparing the extent of poverty across time and place.
In addition, Angus Deaton is an author of the book called “The Great Escape.” In his book, he describes how people from the past “escaped” from poverty. He also writes there that progress is the synonym of inequality. Moreover, Deaton argues with the very popular theory that world poverty could be fought, if every American adult will agree to donate thirty cents a day. He provides clear explanation of how this approach could be counterproductive. He believes that poverty is a result of lack of good institutions and governments, but not the lack of resources, which means that giving money to poor countries is giving money to poor governments, which will waste them. In his book, he doesn’t not only criticize nowadays believes, he also provides some of the decisions. Of course, there are a lot of critics, who are ready to argue with him, especially politicians, but most of the scientists understand that his ideas are right.
Angus Deaton got the Nobel Prize for his “analysis of consumption, poverty and welfare”. Deaton is a British-born professor of international affairs and economics at Princeton University. He developed a great framework that can help estimate how taxes can disproportionally influence on poor households and the spending power and consumption of wealthy.