ISET

Behavioral economics is one of the most notable fields of modern economics. It draws insights from psychology, sociology, biology, and other social sciences.

On 24th of November, ISET hosted Teimuraz Gogsadze, a graduate of the Class of 2011, who gave an introductory lecture in behavioral economics. Gogsadze started his talk by formally defining the scope of behavioral economics. He then discussed the antecedents and historical context of the field, highlighting the importance of psychological realism of assumptions in economic modelling before the start of 20th century and the gradual removal of psychology from economics during the first half of the 20th century.

ISET Policy Institute together with Japan Tobacco International (JTI) Georgia offers free of charge training program "Leaders in Development". The program is designed for anybody who is involved in, or is affected by, public policy decisions: government analysts and decision-makers, parliament staffers, private sector executives, civil society activists, as well as development professionals working in international organizations.

The ten modules of the program tackle some of the most important challenges of Georgia’s economic development, with a focus on how policy decisions (or indecision) directly and indirectly affect Georgian society, businesses and households. For example, we will discuss the implications of changes in tax administration and taxation (corporate, income, excise, VAT) on prices, investment, domestic production and consumption, human capital and labor supply.

On November 21, Prof. Dr. Stephan von Cramon-Taubadel gave a presentation of a working paper entitled “Trade Costs for Heterogeneous Agricultural Products” at ISET. The professor himself and Mr. Yi Qu are the co-others of the paper, which aims to evaluate trade costs for 125 different agricultural products based on 1992-2011 data from 156 different countries.

Geographic characteristics (island or mainland, number of neighboring countries, etc.), transportation (the distance products cover domestically or internationally), tariffs (on exports and imports), institutions and the history of the country, as well as demographic characteristics (the religion of the majority of the population in a particular trading partner, common language, etc.) serve a role of explanatory variables in the analyses.

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