Regional price differences in Russia impact poverty, inequality, and economic policy.
This article analyzes why prices differ between regions in Russia. The researchers looked at 69 products in 76 regions from 2003 to 2015. They found that regional price variations are influenced by factors like trade costs, monopolization of retail, and the Balassa-Samuelson effect. Understanding these differences can help in reducing poverty and making better economic policies. It can also improve the accuracy of forecasting the effects of monetary policies.