Abstract
How does the spatial dynamics of the socialist city compare with that of the market city? What happens when all investment decisions are made administratively in the absence of land markets? Russian development is the longest socialist experiment on record. Its outcome is of paramount interest to urban economists. This paper reports the first analysis of the structure of Russian cities after 70 years of Soviet development. The main finding is a perversely positive population density gradient. The Soviet city also has a disproportionate share of industrial land, often in prime locations. Free property trading started in Russia in 1992. The emerging negative price gradient contrasts totally with the positive population gradient that is the legacy of administrative land allocation. These two conflicting gradients highlight the land misallocation and inefficiency of the socialist city.
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