ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Mar
26

What Happens When Institutions are Designed to Provide Bullet-proof Protection against Fraud?

DESIGNING LIBRARIES  “Shock and awe” is a US military term describing the use of overwhelming power to demoralize the enemy, as applied by the American military in Iraq. “Shock and awe” would also aptly describe my emotional state when I entered, at the age of 23, the magnificent reading room at the Bodleian Library in Oxford. This was the moment when I – a former paratrooper and an officer with one of Israel’s security services – understood how badly I want to acquire an education. Not technical knowledge or skills, but an education.    ...
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Mar
23

Smokers in Post-Soviet Countries: Ill-Informed or Just Irrational?

Tobacco consumption is widely known for its negative effects on health. According to the US Center for Disease Control and Prevention, just in the USA an estimated 443,000 people die per year prematurely due to inhaling cigarette smoke. As there are 46 million smokers in the USA, it means that in any given year, the likelihood to “die prematurely” because of one’s smoking habit is almost 1% (under the admittedly strong assumption that these numbers are constant in the long run). If one smokes for 10 years, the probability that one’s life will be cut shor...
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Mar
20

All the Roads Lead to Tskaltubo

FROM BADEN-BADEN “Roulette until six in the evening. Lost everything”, notes Leo Tolstoy on July 14, 1857. He did not pen these words in Moscow or St Petersburg”, writes Elizabeth Neu. “It was in Baden-Baden that Tolstoy closed his diary with a sigh that night.” “Tolstoy was not the only literary genius to have travelled thousands of miles from Russia to take the waters and enjoy the thrill at the roulette tables… and to leave with empty pockets. They all flocked here: the great realist Ivan Goncharov and the enthusiastic young ballad rhymer Vasili Zhuko...
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Mar
13

Save the Georgian Bazaar!

Open-air markets, so called bazaars, are considered by many Georgians to be relics of the past. Progressive people buy in supermarkets with all its amenities: clean areas, shiny floors, the temperature regulated at a convenient level, the products placed in order and often arranged tastefully. Only backward people buy in a bazaar if there is a supermarket available. This shift in shoppers’ preferences is illustrated by changes in the market structure. Five years ago the only big supermarket in Tbilisi was Goodwill, but the presence of supermarkets increa...
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