University of Pittsburgh The proposed research will focus on the general topic of market integration in established market economies using the example of Russia. The specific objectives are to: compare and interpret spatial pricing patterns observed in Russia with other market economies and to analyze the characteristics of cities which thrive, stagnate or fall behind during this period of rapid change. A unique data set, already compiled, on retail prices, price controls, spreads between state and market prices, speed of locally initiated privatization, formal and informal trade patterns and costs of subsistence food baskets will be utilized and analyzed in an econometric modeling procedure. The matter of internal borders that separate highly integrated cities from outside cities will be examined. A case study analysis of nine Russian cities will be undertaken. The results will provide general information on the impact of liberalization efforts in economies in the process of transition.
