Forecasters, professionals and amateurs alike, all got it wrong. The Brexit came as a surprise because the bookmakers (people who organize bets on developments in politics, economics, and sports) reported that about three times more money was put on the event that Britain would stay in the EU than on its alternative. With poll results being inconclusive in the weeks before the referendum, this led many pundits to believe that Britain would stay in the EU.
Also in the United States, the predictors were dramatically embarrassed when Donald Trump pr...
ISET Economist Blog
A blog about economics in the South Caucasus.
Oct
03
Sep
27
Few may have noticed an amendment to the Georgian Law on Higher Education, passed in December 2015, which potentially ushers in a new era for Georgia’s higher education system. As of January 2017, (some) Georgian professors and senior research staff will be appointed for an indefinite term (i.e. given "tenure"). Offered decent compensation and protected from political pressures and job insecurity, they will be able to indulge in academic endeavors, nurturing a new generation of Georgian academics and promoting Georgian science onto the global scene.
This...
Sep
20
In September 2016, ISET’s Consumer Confidence Index added 13 points, the single largest monthly increase in the Index since its launch more than 4 years ago. Having risen from -28.7 to -15.7 points, the CCI rebounded to levels we have last observed about two years ago, in fall 2014 (i.e. at the outset of the GEL devaluation drama). Both the Expectations and Present Situation components of the CCI soared (up by 11.1 and 14.9 points, respectively), breaking historical records for monthly increases.
On the one hand, the latest improvement in the CCI extends...
Sep
12
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...
Sep
06
In the last two decades, happiness has moved into the focus of economic inquiry. Frey and Stutzer (“What can Economists Learn from Happiness Research”, Journal of Economic Literature 20, 2002, pp. 402-435) argue convincingly that gross domestic product (GDP), unemployment, inflation, and many other indicators of economic performance are primarily interesting because they are correlated with the well-being of people. Without the assumption that these parameters are proxies for happiness, there would be no reason to pursue economic policies that maximize i...
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