Angus Deaton gets Nobel prize in economics

12 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.

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  1. You mean the Swedish Bank Prize Which Isn’t Actually A Nobel Prize, don’t you?

    I doubt anyone who does work on the subject of fraud and deception in markets will ever get that prize, given that the prize-givers are openly committing a deliberate deception on the public…

  2. Why do you think the prize should be dumped?

  3. I read your blog with interest every few days. However, I can’t understand your enthusiasm for Deaton. I was a postgrad student in the 1980’s while working in market research i.e. consumer research. When I asked my profs for something that economists had written about consumer research, they recommended Deaton. It was like entering a different world without real people — so different from my day job.

    I’m currently reading “Phishing for Phools” by Akerlof and Shiller. This is more like reality — I was one of the phishers! When will economists start to look at what is, not what they think is, sitting in their armchairs?

    re the Riksbankenpris for economics: how could they possibly overlook Piketty — he’s the only economist to cause ripples in society for a long time. Or doesn’t this count?

    BTW I dropped out of postgrad econ.


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