Berkeley economist wins Nobel Prize
Prof. Gerard Debreu of the University of California at Berkeley won the 1983 Nobel Prize for Economics, the Royal Swedish Academy of Sciences announced Monday.
The academy awarded him the $190,000 prize for demonstrating mathematical proof of Adam Smith's classic ''theory of general equilibrium,'' in which prices , supply, and demand tend toward a balance within a free-market economy. The French-born Debreu designed his model in the early 1950s with Kenneth Arrow, who won the Nobel award in 1972.
Nobel officials said computer models based on Mr. Debreu's work are routinely used by the World Bank and similar agencies for analyzing trends in national economies and world markets. Debreu became an American citizen in 1975.