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Spatial and Hierarchical Differentiation of Accommodation Prices among Russian Cities

Author

Listed:
  • P.L. Kirillov (linard@mail.ru)
  • A.G. Makhrova(almah@mail.ru )

Abstract

The paper identifies a set of key pricing factors for housing accommodations. We use regression analysis to find out cause and effect relationship in the ‘pricing factors – price discrimination’ system. For cities of Russia, indices that determine accommodation prices to a great extent are as follows: retail turnover, salary level and migration gain. Spatial differentiation of housing accommodation prices from the west to the east of Russia rather reflects how the population is spread across the country and how the demographic and economic potential is shifted to the west, than the difference in prices. We show that among the main axes which depict how accommodation prices vary in regions the ‘center–periphery’ line is the most significant one. Center–periphery differentiation is the most pronounced within urban agglomerations where transport accessibility to their kernels forms their own gradient, accentuating other pricing factors. We draw a conclusion that the current spatial disproportions on the Russian accommodation market are defined by the general centralization trend taking place in the country and are subject to the natural center–peripheral model on lower hierarchic levels

Suggested Citation

  • P.L. Kirillov (linard@mail.ru) & A.G. Makhrova(almah@mail.ru ), 2014. "Spatial and Hierarchical Differentiation of Accommodation Prices among Russian Cities," Journal "Region: Economics and Sociology", Institute of Economics and Industrial Engineering of Siberian Branch of RAS, vol. 3.
    • Handle: RePEc:nos:regioe:2014-3_14
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