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Replication repository for the paper "Bearing the cost of politics: Consumer prices and welfare in Russia"

Evolution of average prices of embargoed and non-embargoed products.

Evolution of average prices of embargoed and non-embargoed products.

The file readme.pdf details how to replicate the results of the paper "Bearing the cost of politics: Consumer prices and welfare in Russia" by Julian Hinz and Evgenii Monastyrenko. For more information about the paper see https://julianhinz.com/research/prices_in_russia/.

Please cite the paper as

@article{Hinz2022,
    title = {Bearing the cost of politics: consumer prices and welfare in Russia},
    journal = {Journal of International Economics},
    pages = {103581},
    year = {2022},
    issn = {0022-1996},
    doi = {https://doi.org/10.1016/j.jinteco.2022.103581},
    url = {https://www.sciencedirect.com/science/article/pii/S0022199622000137},
    author = {Julian Hinz and Evgenii Monastyrenko},
    keywords = {Embargo, Sanctions, Consumer prices, Trade policy, Sectoral linkages},
    abstract = {In August 2014, the Russian Federation implemented an embargo on select food and agricultural imports from Western countries in response to previously imposed economic sanctions. In this paper we quantify the effect of this embargo on consumer prices and welfare in Russia. We provide evidence for the direct effect on monthly consumer prices with a difference-in-differences approach. The embargo caused prices of embargoed goods to rise by up to 7.7% – 14.9% in the short run and by on average 2.6% – 8.1% until at least 2016. The results further suggest the shock was transmitted to non-embargoed sectors through domestic input-output linkages. We then construct a general equilibrium Ricardian model of trade with input-output linkages and goods that are tradable, non-tradable or embargoed. The model-based counterfactual analysis predicts the overall price index in Russia to have increased by 0.33% and welfare to have declined by 1.84% due to the embargo.}
}

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Replication repository for the paper "Bearing the cost of politics: Consumer prices and welfare in Russia"

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