Distribution Dynamics of Russian Regional Prices
26 Pages Posted: 22 Dec 2013
Date Written: October 20, 2013
This paper studies the behavior of the entire distribution of consumer prices across Russian regions over the decade of 2001–2010. The analysis uses non-parametric techniques, exploiting the distribution dynamics approach. The results obtained evidence that regional relative prices in Russia remained fairly stable during 2001-2010. No significant changes are found in price dispersion and cross-region price distribution over this time span. Rank mobility was very low with seasonal surges. The pattern of quantity mobility manifests neither convergence nor divergence of regional prices. However, a long-run price distribution has an unpleasant feature, predicting potential emergence of a price convergence club in the Russian Far East.
Keywords: price convergence; price dispersion; price mobility; market integration; stochastic kernel
JEL Classification: P22, R10, R15
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