ISET

ISET Economist Blog

A blog about economics in the South Caucasus by ISET
Sep
20

ISET’s Consumer Confidence Index Shoots through the Roof

In September 2016, ISET’s Consumer Confidence Index added 13 points, the single largest monthly increase in the Index since its launch more than 4 years ago. Having risen from -28.7 to -15.7 points, the CCI rebounded to levels we have last observed about two years ago, in fall 2014 (i.e. at the outset of the GEL devaluation drama). Both the Expectations and Present Situation components of the CCI soared (up by 11.1 and 14.9 points, respectively), breaking historical records for monthly increases. On the one hand, the latest improvement in the CCI extends...
Rate this blog entry:
Continue reading
139
0 Comments
Write a Comment
Sep
19

What Do Politicians Promise Us: a Popular Guide to Political Platforms on Agriculture

“To win the people, always cook them some savory that pleases them.” ― Aristophanes, The Knights As the Election Day of October 8th approaches, we hear more and more about the platforms of Georgian political parties. Given that political competition is very fierce, one naturally expects to hear some blatantly populist statements – the kind of political promises (known to humanity from the times of Aristophanes) which are very popular among the voters, but are hard or impossible to implement in practice. Thus, for example, the reform of the tax syste...
Rate this blog entry:
Continue reading
65
1 Comment
Write a Comment
Sep
12

Do Teachers Respond to Incentives? Results of a Philanthropic Experiment in Sachkhere, Georgia

  What can bring the brightest among Georgian university graduates to the country’s public schools? While money alone may not do the trick, it is difficult to see a solution that does not represent a radical departure from the current remuneration system which places teachers – who hold the keys to Georgia’s future as a nation! – at the very bottom of the social ladder. Not only teachers remain the lowest paid category of Georgian workers but the gap between the annual average wage in education and other sectors of the economy has been widening over...
Rate this blog entry:
Continue reading
274
1 Comment
Write a Comment
Sep
12

To Bee or not to Bee?

  The economic significance of bees extends far beyond honey production. As the National Resource Defense Council writes in 2011 (“Why We Need Bees: Nature’s Tiny Workers Put Food on Our Tables”), the value of the honey that bees produced in the US in that year amounted to 150 million dollars, while the value of the harvested crops that were pollinated by bees was 15 billion dollars, i.e., greater by a factor of 100! Having bees around is not primarily beneficial for the beekeepers, but even more for anyone else who grows crops, fruits, or vegetable...
Rate this blog entry:
Continue reading
278
0 Comments
Write a Comment
Sep
06

Homo Economicus Sisyphus

In the last two decades, happiness has moved into the focus of economic inquiry. Frey and Stutzer (“What can Economists Learn from Happiness Research”, Journal of Economic Literature 20, 2002, pp. 402-435) argue convincingly that gross domestic product (GDP), unemployment, inflation, and many other indicators of economic performance are primarily interesting because they are correlated with the well-being of people. Without the assumption that these parameters are proxies for happiness, there would be no reason to pursue economic policies that maximize i...
Rate this blog entry:
Continue reading
228
1 Comment
Write a Comment
Sep
05

Georgian Pension Reform – an Experiment in Libertarian Paternalism?

Starting from October 1, 2017, a private retirement savings system will be launched in Georgia as part of a broader pension reform. This reform has been discussed by Nino Doghonadze and Yaroslava Babych in Decent Income in Old Age: Georgian Dream or Reality? on the ISET Economist. Today we will focus only on one very interesting aspect of the reform – the “opt-out” principle and its implementation in the Georgian realities. WHAT’S IN THE “OPT-OUT”? The proposed private retirement savings system is based on the “opt-out” principle, according to which...
Rate this blog entry:
Continue reading
927
7 Comments
Write a Comment

Our Partners