Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212575 
Year of Publication: 
2006
Series/Report no.: 
BOFIT Discussion Papers No. 3/2006
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
Perfect integration eludes the real world, so we suggest a realistic benchmark standard for judging the extent of market integration in various economies.We estimate the degree of integration in the US product market, widely acknowledged to be the most integrated among geographically large economies, so as to provide a reference for measuring Russian market integration. Prices for 27 grocery items across 29 cities of the United States in the first quarter of 2000 are used as empirical data.The estimated degree of integration turns out to be very close to values obtained for Russia for 2000.Apparently, market integration in Russia has in recent years moved toward conditions found in advanced market economies.The roles of other factors that could potentially cause segmentation of the US market are also analyzed.
Subjects: 
market integration
price dispersion
law of one price
United States
Russia
JEL: 
F14
F15
L81
Persistent Identifier of the first edition: 
ISBN: 
952-462-815-5
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.