This paper presents a theoretical argument that the relationship between price differences and per capita demand differences (approximated by per capita income differences) across locations can be used as a cross-sectional test of the law of one price. Since the relationship should be...

Theoretical considerations suggest that as market institutions are developing in Russian regions, the divergence of regional consumer price levels, which has been caused by the price liberalization of 1992, should give way to price level convergence. Using price dynamics data (overall consumer...

The paper analyzes a spatial pattern of goods market integration in Russia, and characterizes the movement of the national market as a whole to integration. By the spatial pattern is meant a state of each individual region of the country: whether it is integrated, and if not, whether it moves...