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Evidence based development economics: Nobel Prize in Economic Sciences 2019

The 2019 Nobel Memorial Prize in Economic Sciences was awarded to Abhijit Banerjee, Esther Duflo, and Michael Kremer for developing experimental approach to studying the problem of reducing world inequality. The works of laureates combine detailed microeconomic analysis of practical problems related to development economics with careful empirical estimation of the effects of particular development programs through the use of field experiments. The paper discusses methodological contribution of the laureates, their influence on changing economists’ approach to working on practical issues related to development economics. The paper also provides a short survey of the results of their research in areas of economics of education, health and behavioral economics, microcredit, and gender inequality.