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Definition: Trygve Haavelmo
A Norwegian economist who was awarded the Nobel Prize in 1989 for his contribution to probability theory foundations of econometrics and simultaneous economic structures
His major contributions include:
1. An article that shows some of the statistical implications of simultaneous equations(1943)
2. Another article that based econometrics on probability theory more firmly(1944)
During the war years Haavelmo worked for the Norwegian government in the United States and authored a book named “The Probability Approach in Econometrics.” In this he explained many of the methods, which were used in economics but he explained these techniques were not very authentic and were deceptive.
His book ‘A Study in the Theory of Economic Evolution’ highlighted the causes of underdeveloped economy of a specific country in comparison to others. Balanced budget multiplier was also one of his fields of work
He was also a professor of economics at the University of Oslo from 1948.Another of his seminal works was the ‘Theory of Investment’. It coined the demand for the actual capital, the indisposition in the modification of the real capital.