ISET Economist Blog

22 June 2016

Salome Gelashvili, Eric Livny

Georgian Consumers Outsmarting Supermarket Managers?

Seasons change, and so do Georgian food prices. In the second week of June, Georgia’s major food retail networks (Carrefour, Goodwill, Fresco, and SPAR) lowered their prices by an average of 3.9% y/y and 1.8% m/m. Compared to the end of May, prices moved the most for the following food items: eggplant (-21%), pasta (-10.3%), and coffee (-5.7%); wheat flour (+11%), buckwheat (+10.5%), and garlic (+6.8%).

20 June 2016

Givi Kupatadze

MINDSPACE: a New Way to Influence Behavior through Public Policy

In November 2015, the National Audit Office of the UK has published a report saying: “The Department for Work and Pensions has successfully introduced automatic enrolment to workplace pensions for large and medium-sized employers.” The National Audit Office found that 58,000 employers have enrolled 5.4 million workers between October 2012 and August 2015. The huge increase in enrolment was due to a small policy change introduced by the UK government in October 2012.

19 June 2016

Yaroslava Babych

A Temporary ‘High’? Improvements in Business, Consumer Confidence Should Not Distract Policy-Makers from the Long-Term View

In the year of elections, any piece of economic analysis is usually seasoned with a hefty dose of caution. Every analyst is aware of the fact that the incumbents will be too eager to oversell the ‘good’, while the opposition will pound on the ‘bad’. Weary of taking sides in political battles, economists usually switch on their primary defense mechanism: they start relying (heavily) on the annoying “on the one hand”, “on the other hand” kinds of phrases. I am of course referring to Georgia in the year 2016.

13 June 2016

Olga Azhgibetseva, Florian Biermann

The Economics of Boasting

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.

06 June 2016

Florian Biermann

Shame on Europe!

When half a year ago, I predicted in my article “Georgia Exporting Crime” that the visa liberalization would be stalled at the last moment, I was called a grumbler and alarmist. Unfortunately, usually, the pessimists get it right.

05 June 2016

Tamta Maridashvili, Mariam Zaldastanishvili

Obstacles for Dual Vocational Education in Georgia

In Central Europe, vocational education and training (VET) has a tradition that reaches back to medieval times. To become, say, a baker in 14th century Germany, one had to go through an apprenticeship of two years, working and learning in an existing bakery, where one was guided and supervised by a meister (master craftsman). The apprenticeship was standardized and – if successful – ended with the conferment of a certificate and admission to the baker’s guild.

ISET Economist Blog

A blog about economics in the South Caucasus financed within the institutional grant by the Government of Sweden.