Wednesday, May 11, 2011

Why is Coffee so expensive in Moscow

Interesting BBC item on the reason a cup of coffee will set you back 7 dollars in Moscow. The main culprit is official corruption and regulatory red tape, so much so that, "defective institutions are responsible for up to 30% of property prices, 15% of the cost of retail goods and 10% of communication services prices." The article links to some interesting cross-national measures of institutional effectiveness and corruption.

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