The Centre for Research in Microeconomics (CReMic) recently instituted the Sir Richard Stone Annual Lecture. It is to be a major event in the annual calendar of CReMic whose primary aims are to provide a focus in the Faculty and more widely in Cambridge for first class research in microeconomics. The Lecture provides an opportunity for a leading scholar to discuss issues of particular current research interest. The Lecture also honours Sir Richard Stone, the founding Director of the Department of Applied Economics, a Nobel Prize winner, and a major contributor to developments in microeconomics especially the theory and empirics of consumer behaviour.
The inaugural lecture was entitled “How Revealing is Revealed Preference? The Stone Legacy and the Analysis of Consumer Behaviour”. It was presented by Richard Blundell, the David Ricardo Professor of Political Economy at University College London, at Gonville and Caius College where Sir Richard Stone was an Honorary Fellow. Using a non-parametric approach, his Lecture addressed two key criticisms of the empirical application of revealed preference theory to consumer behaviour. The first is that, when it is not rejected, revealed preference theory does not provide precise predictions. The second is that, when it is rejected, it is unable to characterize either the nature of consumer irrationality or the degree or direction of changing tastes.
Next year’s lecturer will be Professor David Laibson of Harvard University.
Richard Smith
Two distinguished alumni have passed on during the year. Sir Kenneth Berrill (above) was a lecturer in the Faculty, as well as Bursar at both St Catharine's and King's Colleges, throughout the 1950s and 1960s. He moved on to a remarkable career in both public service and the City as, among other roles, Head of the Government Economic Service and as Chair of the Securities and Investment Board. Lord 'Eddie' George served most of his career at the Bank of England, culminating as Governor for an eventful ten years up to his retirement in 2003.