Angus Deaton gets Nobel prize in economics12 October, 2015 at 13:23 | Posted in Economics | 4 Comments
Not bad at all. Deaton has made very interesting contributions to many fields in economics. The one below — on the restricted applicability of RCTs — is one of my favourites:
An area where Deaton has made significant contributions is income and consumption modeling. Here he has always shown a healthy doubt about the value of microfounded representative actors models:
I realized, after a lot of agonizing and checking my imperfect understanding of time series analysis, that one common version of the representative agent permanent income model made no sense … This work taught me something important, that representative agent models are as dangerous and misleading as they are unrealistic.
And yes, just for the record, I still think the prize should be dumped.