ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Sep
18

Confidence Matters!

Georgian consumer confidence suffered a major blow at the end of 2014, in the wake of the sharp Lari depreciation. Around February 2015, the Index found some support at the very low level of -35-30 points, and has been slightly improving since then. In July 2015, this mildly positive trend was reversed, and in August, the Index dropped another 4.1 points to reach a new historical minimum of -38.4 points. Interestingly, this entire drop was driven by older respondents, those aged over 35. We will come back to this point later in the article. At the same ...
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Jul
13

Where Is the Free Lunch?

 DOES GEORGIA BENEFIT (OR NOT) FROM THE DROP IN INTERNATIONAL FOOD PRICES? An average Georgian household spends more than 40% of its budget on food. It therefore stands to reason that Georgian consumers are quite sensitive to food prices, which may be very good news considering recent developments in global commodity markets. According to the latest World Bank’s Food Price Watch, “international food prices declined by 14% between August 2014 and May 2015, sliding into a five-year low.” For lower-middle income households this could result in a 6% inc...
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Mar
23

Smokers in Post-Soviet Countries: Ill-Informed or Just Irrational?

Tobacco consumption is widely known for its negative effects on health. According to the US Center for Disease Control and Prevention, just in the USA an estimated 443,000 people die per year prematurely due to inhaling cigarette smoke. As there are 46 million smokers in the USA, it means that in any given year, the likelihood to “die prematurely” because of one’s smoking habit is almost 1% (under the admittedly strong assumption that these numbers are constant in the long run). If one smokes for 10 years, the probability that one’s life will be cut shor...
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Recent Comments
Guest — Eric Livny
Very interesting survey results, Aram! For the story to be a little more "scientific" I would divide the cigarette prices by a mea... Read More
Monday, 23 March 2015 3:03 PM
Guest — Aram Grigoryan
Dear Eric, If we take into account the income differences between post-soviet countries and EU the price difference of cigarettes ... Read More
Sunday, 03 May 2015 4:04 PM
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Nov
07

From Soviet to Post-Soviet Consumerism

In a sense, life was relatively simple back in the Soviet Union days. Consumers had few choices, and material aspirations were limited to the unholy trinity of “apartment, car and dacha”. That said, homo Sovieticus spent enormous amounts of time and energy in chasing material goods ranging from potatoes to nylon stockings and cars. A part of Soviet consumer behavior was about satisfying basic needs (as in the potatoes example above). But there was a discernible element of conspicuous consumption as well. Possession of a luxurious Pobeda car was deemed an...
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Guest — Levan Pavlenishvili
In my undergraduate years one of my lecturers was ex prime-minister of Georgian SSR, Mr. Nodar Chitanava who appears to be a neigh... Read More
Thursday, 13 November 2014 10:10 AM
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