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Limits of regional food price differences and invisible hand

Author

Listed:
  • Dobronravova, Elizaveta

    (Moscow Lomonosov State University, Moscow, Russian Federation)

  • Perevyshin, Yury

    (RANEPA, Moscow, Russian Federation)

  • Skrobotov, Anton

    (RANEPA, Moscow, Russian Federation)

  • Shemyakina, Kira

    (RANEPA, Moscow, Russian Federation)

Abstract

Based on 33 food products prices in 78 Russian regions from 2003 to 2018 we estimate regional price threshold which leads to price convergence. We applied econometric tests for the unit root null hypothesis versus a nonlinear alternative, and the null of linearity versus a nonlinear alternative. About a 40% of time series corresponds to the three-regime TAR-model and weak form of the law of one price.

Suggested Citation

  • Dobronravova, Elizaveta & Perevyshin, Yury & Skrobotov, Anton & Shemyakina, Kira, 2019. "Limits of regional food price differences and invisible hand," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 53, pages 30-54.
    • Handle: RePEc:ris:apltrx:0360
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    References listed on IDEAS

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    More about this item

    Keywords

    law of one price; threshold autoregression; regional price differences; price convergence; Russian regions.;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • P22 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Prices
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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