Angus Deaton's Nobel prize

What is it about?

Angus Deaton has made a career out of finding ways to critically test economic theory using available data. He does so by astutely identifying a testable claim that is central to economic theory and developing a convincing econometric strategy for testing it with a clear view on the problem of identification. I review his contributions in a number of areas -- starting with consumption theory in the 1970s -- to make the case why he is a deserving recipient of The Prize.

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Why is it important?

Deaton is not a heterodox economist, but he has been a fierce critic of mainstream economics when its claims to do not hold up empirically. He has also written appreciatively about heterodox approaches to economics and the danger to the discipline when they are silenced. I believe that there are lessons for all economists to be learned from Deaton's example for how to be a social scientist.