Statistical Assessment of the Impact of Price Differences on the Value Indicators of Regional Development

An important factor in the comparative analysis of regional value indicators is the consideration of subnational differences in prices. To obtain correct indicators suitable for such analysis, the technique of spatial deflation on the basis of difference in the purchasing power of the national currency between regions can be applied. This technique is widely used in international comparisons, but currently many countries with the support of international organizations use it for subnational calculations. This raises a number of significant methodological and practical issues.

he article discusses possible approaches to solution of some related problems. The authors describe the inter-territorial differentiation of the purchasing power of the national currency as an important feature of the national market; examine the international and Russian experience in assessing the subnational differentiation of the purchasing power of the national currency, consider the methodology for calculating the purchasing power parities (PPPs) of the national currency at the subnational level, the partnership between Rosstat and the scientific community for adjusting for analytical purposes the regional value indicators on the basis of subnational PPPs.

The paper also informs about the beginning of work at the National Research University Higher school of Economics on the assessment of the impact of spatial differences in prices on the value indicators of regional development, in particular - on the indicators of income inequality. It is noted that the calculations will be carried out using the official data on prices published by Rosstat and in general cooperation with official statistics. In light of the forthcoming adjustment of the value indicators of the development of the Russian regions with account to PPPs, the authors using concrete examples sum up the need for careful study of the relevant international experience, but also to take into account the Russian specifics, requests from Russian users of statistical data and features of existing information sources.

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