ISET Economist Blog

A blog about economics in the South Caucasus.

The Georgian Tax Lottery Experiment after Seven Years

More than three decades ago economists famously concluded that tax compliance is rather irrational behavior. Literature, across a wide range of disciplines, has since been overflowing with analysis as to why we see so much tax compliance in the modern world. The academic literature is concerned with why people pay so much tax or why so many people pay taxes, therefore policy-makers can gain an understanding of the underlying mechanisms, which thus allows them to design appropriate policy actions to boost revenue efforts. Income generated from tax collect...
Rate this blog entry:
Continue reading

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...
Rate this blog entry:
Continue reading

Tax Inspection With A Human Face?

Apostle Matthew was a tax collector in Galilee -- perhaps the most hated occupation in the ancient world.By quitting his job and deciding to follow Jesus, Mathew accomplished one the greatest transformations possible in a person’s life. Modern tax inspectors are certainly not expected to follow Jesus. However, by following insights from behavioral economics, they may gain in respect and social status while also improving tax collection, in Georgia and elsewhere around the world. As discussed in our previous article, Georgia’s tax administr...
Rate this blog entry:
Continue reading

Our Partners