The Law of one Price in the Russian Economy

Arbeitspapier

Taking the law of one price as a test for market integration, the spatial set-up of Russia's market integration over 1994-2000 is analyzed with the use of time series of the cost of a staples basket across Russian regions. The law is found to hold for about 50% to 60% of Russian regions, estimates of a threshold model suggesting rather high barriers to inter-regional trade. To reveal whether there is a movement towards market integration among non-integrated regions, dynamics of cross-sectional distribution of prices receives study. The results indicate that such a tendency does take place. An effort is made to identify forces responsible for Enter-regional price disparities.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: LICOS Discussion Paper ; No. 152

Classification and Topics

• Classification: Wirtschaft ; Socialist Systems and Transitional Economies: Prices ; Socialist Systems and Transitional Economies: Urban, Rural, and Regional Economics ; General Regional Economics: Econometric and Input-Output Models; Other Models ; General Regional Economics: Other
• Subject: market integration ; price dispersion ; price convergence ; Russia ; Russian regions ; Preisdifferenzierung ; Marktintegration ; Russland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gluschenko, Konstantin
• Event: Veröffentlichung
• (who): Katholieke Universiteit Leuven, LICOS Centre for Transition Economics
• (where): Leuven
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/75059
• Last update: 10.03.2025, 11:44 AM CET