The Complexities Facing the Competition Authority
13 April 2015

Economists disagree whether it was a good decision to reestablish the Georgian competition authority. When some years ago it was removed, the underlying logic was that a non-existing authority cannot be corrupt, and, more importantly, cannot harm the economy through misguided decisions. Assuming that corruption will not be a problem for the competition authority, neither now nor in the future, regulating markets is still a highly delicate issue which yields many possibilities to go wrong.

Earmarks: “driver of legislature” or a “gateway to corruption”?
13 February 2015

On February 11th, ISET hosted Olivier Harlem, Ph.D. of the Erasmus School of Economics, Rotterdam. Dr. Harlem presented his job market paper, “Earmarks”. Earmarks were U.S. federal funds that are designated for local projects and were easy for local representatives to obtain for their electoral districts.

ISET Hosts Dr. Andrea Mantovani for a Seminar on the Fight against Cartels
21 February 2014

How significant is welfare loss in the presence of cartels? How best to fight against cartels to avoid them ex-ante? These were the leading questions of the presentation of Dr. Andrea Mantovani (University of Bologna) at ISET on February 20, 2014.

On Social Planning, Symphonies and Cacophonies
22 March 2013

An unprejudiced look at the Georgian economy is rather disenchanting. Starting in 1990 at a per capita income that was close to Poland’s, Georgia went into a free fall as a result of secession wars, loss of markets, an explosion of crime and corruption, and the staggering incompetency of its governments.

Is Some Degree of Corruption Good for Growth? – It Could Be.
15 February 2013

It is a commonly accepted view that corruption is bad for economic growth. It leads to an inefficient allocation of resources by contradicting the rules of fair competition and by setting wrong incentives.