Using a panel from the Russian Longitudinal Monitoring Survey (1994)(1995)(1996)(1997)(1998)(1999)(2000)(2001)(2002)(2003)(2004), this paper investigates to what extent Russian households have been able to maintain their living standards while suffering income shocks. Consumption smoothing is modelled by means of an equilibrium correction mechanism, which disentangles short-run dynamics and long-run equilibrium adjustments. GMM estimation is used to control for individual household effects in the presence of dynamics. Additionally, we differentiate between food and non-food consumption, positive and negative shocks, rural and urban areas, and several levels of poverty risk. We find that dynamics are important in the consumption equation, and that estimates are sensitive to imputation errors in home food production. No strong claims can be made regarding heterogeneity in smoothing behaviour.
This study presents novel evidence regarding the role of regional internet infrastructure in reducing regional per capita income disparities. We base our study on the assumptions that (1) the diffusion of information homogenizes regional economies through reducing the dissimilarities in institutions and culture, and (2) the telecommunication capacity, represented by the internet infrastructure of a region, facilitates this flow of information. Using the data from the 26 statistical NUTS‐2 regions of Turkey for the period 1999–2011, we find evidence that internet infrastructure increases the speed of regional convergence.
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