ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Nov
05

Lock, Stock and Two Smoking Barrels

“All the evidence shows that God was actually quite a gambler, and the universe is a great casino, where dice are thrown, and roulette wheels spin on every occasion. Over a large number of bets, the odds even out and we can make predictions; that's why casino owners are so rich. But over a very small number of rolls of the dice, the uncertainty principle is very important” – Stephen Hawking. Casinos, totalizators, and other gambling institutions are very popular in Georgia. According to the study “Gambling in Georgia – Second Report,” conducted by Transp...
Rate this blog entry:
Continue reading
1850
2 Comments
Write a Comment
May
22

On Rational Procrastination

One of the most fundamental assumptions in mainstream economics is the rationality of humans. Yet, as argued by Timothy A. Pychyl, professor of psychology at Carleton University in Canada, frequently observed procrastinating behavior, i.e. the “needless voluntary delay” (Pychyl), cannot be reconciled with the rational man paradigm.  Pychyl claims in his book The Procrastinator’s Digest that procrastinators violate a most fundamental axiom of rationality, namely the so-called transitivity of preferences. If a person prefers dogs to cats and cats to h...
Rate this blog entry:
Continue reading
2925
18 Comments
Write a Comment
Apr
24

Lost from the Start

14 years ago, the American educationalists Valerie E. Lee and David Burkham published a highly noticed and controversial study titled “Inequality at the Starting Gate: Social Background Differences in Achievement as Children Begin School” (Economic Policy Institute 2002). The authors work with a sample of 16,000 children who entered US kindergartens in 1998 and 1999 and who had taken the ECLS-K entry test, measuring a children’s basic reading and mathematical skills. The authors showed that the social and economic background of a child was a reliable pre...
Rate this blog entry:
Continue reading
2172
19 Comments
Write a Comment
Feb
27

Don’t Talk about Georgia’s Future!

According to Micklewright (Macroeconomics and Data on Children, UNICEF 2000), a share of 7% of the Georgian gross domestic product of the year 1991 accounted for education. In 1994, this number had fallen to 1%. As Micklewright comments, such a dramatic decrease of educational expenditures was never seen before nor afterwards in the history of any country. Recovery after the crisis was a long process. Until 1998, spending on education had only increased to 2.1% (World Bank Development Indicators), and in 2002, wages in the educational sector were still r...
Rate this blog entry:
Continue reading
2311
2 Comments
Write a Comment
Oct
25

Borrow in Dollar or Lari? That Is the Question!

The Georgian lari’s depreciation against the dollar has been a pressing issue for everyone: economists and policymakers, students, housewives and even the good-for-nothing “birzhavik’s”. The weaker lari may be good news for Georgia’s export competitiveness and trade balance, yet it also pushes up the prices of anything we import. This may include some luxury items we can do without, but also many things that are absolutely essential for the Georgian economy: primary commodities, production inputs and machinery, foodstuffs and medicines. And by raising th...
Rate this blog entry:
Continue reading
2828
2 Comments
Write a Comment

Our Partners