Princeton University Professor Angus Deaton has the won the 2015 Nobel Economics Prize "for his analysis of consumption, poverty, and welfare".
The Royal Swedish Academy of Sciences said by linking detailed individual choices and aggregate outcomes, Deaton's "research has helped transform the fields of microeconomics, macroeconomics, and development economics."
The Nobel committee says his work revolves around three questions: how do consumers distribute their spending among different goods; how much of society's income is spent and how much is saved; and how do we best measure and analyze welfare and poverty?
It says his research has shown "how the clever use of household data can shed light on issues such as the relationship between income and calorie intake, and the extent of gender discrimination with the family."
"Deaton's focus on household surveys has helped transform development economics from a theoretical field based on aggregate data to an empirical field based on detailed individual data," it says.
In a press conference following the announcement, Deaton said he was delighted that his work had been recognized. He told reporters he believed poverty would decline. "I think we've had a remarkable decrease for the past 20 to 30 years. I do expect that to continue."
Deaton, a British and U.S. citizen born in Scotland, has been a Professor of Economics and International Affairs at New Jersey's Princeton University since 1983.
The award comes with $978,000 in prize money.