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Distribution dynamics of Russian regional prices

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  • Konstantin Gluschenko

    (Siberian Branch of the Russian Academy of Sciences
    Novosibirsk State University)

Abstract

The objective of this paper is twofold: first, to show an application of the distribution dynamics approach developed in the literature on economic growth and income inequality to spatial price analysis, and second, to study the behaviour of Russian regional prices for staples during the decade of 2001–2010. The study includes three veins: first, tracing the evolution of price dispersion and changes in the shape of the cross-region price distribution over time; second, analysing changes in price ranking of regions (rank mobility); and third, analysing quantity mobility with the use of stochastic kernel. 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. Given that potentialities for price convergence among Russian regions existed by 2001, the pattern obtained can be termed stagnation rather than stability.

Suggested Citation

  • Konstantin Gluschenko, 2016. "Distribution dynamics of Russian regional prices," Empirical Economics, Springer, vol. 51(3), pages 1193-1213, November.
    • Handle: RePEc:spr:empeco:v:51:y:2016:i:3:d:10.1007_s00181-015-1039-3
    DOI: 10.1007/s00181-015-1039-3
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    Cited by:

    1. Elena Deryugina & Natalia Karlova & Alexey Ponomarenko & Anna Tsvetkova, 2019. "The role of regional and sectoral factors in Russian inflation developments," Economic Change and Restructuring, Springer, vol. 52(4), pages 453-474, November.
    2. Venera Timiryanova & Irina Lakman & Vadim Prudnikov & Dina Krasnoselskaya, 2022. "Spatial Dependence of Average Prices for Product Categories and Its Change over Time: Evidence from Daily Data," Forecasting, MDPI, vol. 5(1), pages 1-25, December.
    3. Kirillov, Andrew, 2021. "A study on spatial autocorrelation: Case of Russian regional inflation," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 64, pages 5-22.
    4. Айвазян С.А. & Березняцкий А.Н. & Бродский Б.Е., 2016. "Региональные Модели Ценовых Индексов," Журнал Экономика и математические методы (ЭММ), Центральный Экономико-Математический Институт (ЦЭМИ), vol. 52(4), pages 24-46, октябрь.

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    More about this item

    Keywords

    Price convergence; Price dispersion; Price mobility; Market integration; Stochastic kernel; Russian regions;
    All these keywords.

    JEL classification:

    • P22 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Prices
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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