ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Jul
02

Will Georgia Ever Get to the World Cup?

“…….. Georgia clearly has potential. The country is small (5 million people), and horribly poor (even today, average income is below $4,000 per year). If Georgians could just become as rich as Croatia, they too could start beating England at Wembley.” – Simon Kuper and Stefan Szymanski, Soccernomics, (2006, p.287) “Football was born in England, grew to Brazil and died in Georgia” – a well-known joke about Georgian football. This summer, Russia is again at the epicenter of the world, but this time for hosting the 21st FIFA World Cup football tourna...
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Jun
13

The Economics of Boasting

WHO BOASTS, AND WHY? As argued by Omer Moav and Zvika Neeman in a 2012 paper (Moav taught at ISET in the past), boasting is a way to pretend that one has hidden income (“Saving Rates and Poverty: The Role of Conspicuous Consumption and Human Capital”, Economic Journal 122, pp. 933-956). While people may have a rough idea of the incomes of their neighbors, colleagues, friends, and other people they interact with, they usually do not know exactly how much they make. Hence, there is some wiggle room for speculation, and if one sees a colleague coming to wor...
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Recent Comments
Guest — Randy
A more obvious explanation may be that this is even more evidence that reported Georgian incomes are meaningless, as anyone lookin... Read More
Monday, 18 May 2015 5:05 PM
Guest — megiddo02
Randy, do you want to suggest that the $300 per capita GDP are highly inaccurate and the true income is much higher?
Monday, 18 May 2015 5:05 PM
Guest — Sanjit Dhami
All very plausible; the examples from evolution are persuasive and might well apply to humans too. However, poor countries also ha... Read More
Monday, 18 May 2015 7:07 PM
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May
23

Georgia’s Revolutions and Economic Development: from 2004 to Present Time

Following the collapse of the Soviet Union, the Georgian nation went through a process of rapid dis-investment and de-industrialization. It was forced to shut down industrial plants, sending scrap metal abroad, and workers into subsistence farming. Hunger has never become an issue thanks to the country’s moderate climate and good soil conditions, yet inequality and associated political pressures rapidly reached catastrophic dimensions, unleashing cycles of violence, undermining the political order and inhibiting prospects of economic growth. *   &nb...
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Guest — Pratik
Thanks for an excellent summary. One quibble : I do not agree that fair distribution of resources is always an obvious trade-off a... Read More
Thursday, 26 May 2016 10:10 AM
Eric Livny
Dear Pratik, I certainly agree, to a CERTAIN EXTENT. It is easy to overshoot with free healthcare and education policies. Too much... Read More
Thursday, 26 May 2016 2:02 PM
pratik
Thanks, Eric. And I think we will agree there is a flip side too? As seen in US, where absence of universal health care system has... Read More
Friday, 27 May 2016 6:06 PM
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May
16

Georgia’s Revolutions and Economic Development: From Independence to Rose Revolution

Having just celebrated its 25th anniversary as an independent state, Georgia remains in a state of revolutionary flux. Just like a box of chocolate, this beautiful country is full of contrasting flavors, never losing the ability to surprise and fascinate at every twist and turn of its history.  Most paradoxically, while Georgia’s unprecedented reforms have become an export commodity, many Georgian reformers and revolutionaries are wanted at home for abusing the power of their office. Georgia’s laws and institutions continue to be constantly remodele...
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May
11

Georgia in the Cycle of History

The second of May, 2015, may well go unnoticed by historians of the future; but I am convinced that it marks a watershed not only in Georgia’s recent evolution – but also, maybe, in the history of our times... On the surface of life, this Saturday marked maybe the Saturday when tourists finally returned to Tbilisi. At about 2 p.m. spotted a group of about thirty Dutch tourists assembling near the Marriot Courtyard hotel; and there were two further groups moving slowly down the sidewalks of Leselidze Street. Maintaining the festive note, the converted Lon...
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Guest — mfmsm
1 May was the day that the Georgian Parliament introduced a new provision into the visa and migration legislation of Georgia 'maki... Read More
Saturday, 16 May 2015 10:10 PM
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Feb
10

David the Economist (Repost from July 5th, 2013)

  In 1122, King David IV. reconquered Tbilisi from the Muslims. In those times, a bloodbath among the former oppressors would have been the logical consequence of such a victory. Leaders of the High Middle Ages took merciless revenge against their enemies once they had defeated them. Yet David did not! To the contrary, he did not only let the former rulers live, but David was even anxious that the Muslim population might leave Tbilisi after the fall of the city. In order to send a strong signal of appreciation and friendship to the Muslim population...
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Guest — zviad bakhurauli
thanks for this article. ) economy of small countris like georgia are very different to big ones and it needs an individual approa... Read More
Saturday, 06 July 2013 12:12 AM
Guest — Lasha
Many thanks to authors for this wonderful blog. Now I know King David the Economist. I wish Georgian policy makers read this and t... Read More
Saturday, 06 July 2013 12:12 AM
Guest — KingOfKolchis
This is a very nice piece and would be particularly useful to feed into popular economic policy debate. To this end, would be grea... Read More
Monday, 08 July 2013 2:02 AM
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