ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Oct
03

On Predicting Election Results

  Forecasters, professionals and amateurs alike, all got it wrong. The Brexit came as a surprise because the bookmakers (people who organize bets on developments in politics, economics, and sports) reported that about three times more money was put on the event that Britain would stay in the EU than on its alternative. With poll results being inconclusive in the weeks before the referendum, this led many pundits to believe that Britain would stay in the EU. Also in the United States, the predictors were dramatically embarrassed when Donald Trump pr...
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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...
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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...
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Feb
20

Education for the Poor

Worldwide, cash transfer programs are used to fight poverty. Developing countries typically spend between 1% and 2% of GDP on cash transfers (“Cash Transfers: a Literature Review”, DFID Policy Division, 2011). International donors also invest substantially into such programs. The rationale for cash transfers goes beyond relieving short-run poverty. In their 2011 book Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty, eminent development economists Abhijit Banerjee and Esther Duflo explain the approach as follows: People are poor bec...
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