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Measurement and Testing for Equality of Foreign Price and Consumer Price Index Transmission in Russia
Author(s) -
Arnade Carlos,
Osborne Stefan
Publication year - 2004
Publication title -
canadian journal of agricultural economics/revue canadienne d'agroeconomie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 37
eISSN - 1744-7976
pISSN - 0008-3976
DOI - 10.1111/j.1744-7976.2004.tb00097.x
Subject(s) - inflation (cosmology) , financial crisis , price index , index (typography) , economics , monetary economics , consumer price index (south africa) , wholesale price index , russian economy , international economics , macroeconomics , price level , monetary policy , mid price , economic system , world wide web , computer science , physics , theoretical physics
This paper tests for segmentation of retail meat markets in Russia before and after the financial crisis of 1998. Using monthly prices of pork and beef in 80 regions of Russia from 1994 to 1999, we measure the short‐run response of regional prices to changes in foreign prices and domestic inflation. We find that changes in both foreign prices and domestic inflation have distinct impacts on the prices of these commodities in different Russian cities, indicating that the markets are segmented in the short run. An analysis of the effect of the financial crisis shows that the response to the crisis was mixed, with some regions showing more evidence of segmentation than others.