That's for literature, sadly he never had the chance to win a prize for economics, as his political career as a Peruvian classical liberal was cut short by electoral defeat. He has many fine books but I have two particular favorites: The War of the End of the World (serious and epic, concerning a millenarian revolt in Brazil) and Aunt Julia and the Scriptwriter (a fun story and spoof of telenovela culture). Conversation in the Cathedral is sometimes considered a classic but I find it unreadable. I suspect his early The Green House will resonate more with Latin Americans. His last major novel, The Bad Girl, was entertaining but not entirely satisfying and it reminded me a bit too much of an older man writing about sex. The Feast of the Goat is a very good study of political power. Here are previous MR mentions of Mario Vargas Llosa.
Here is Wikipedia on Vargas Llosa. Alex has done a good bit of work with Alvaro Vargas Llosa, son of Mario and a prominent writer on classical liberal themes, and perhaps he will relate some of that to us.