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Wine Economics

Author

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  • Storchmann, Karl

Abstract

Fine wine has a few characteristics that differentiate it from other agricultural commodities and beverages, rendering it an interesting topic for economists. Fine wine can regularly fetch bottle prices that exceed several thousand dollars. It can be stored a long time and can increase in value with age. Fine-wine quality and prices are extraordinarily sensitive to fluctuations in the weather the year in which the grapes were grown. Wine is an experience good, that is, its quality cannot be ascertained before consumption. As a result, consumers often rely on “expert opinion†regarding quality and maturation prospects. This article describes the emergence and the unparalleled rise of wine economics from the 1980s to the present and sheds light on its three main topics: finance, climate change, and the role of expert opinion. (JEL Classification: Q1, G11, Q54, L15)

Suggested Citation

  • Storchmann, Karl, 2012. "Wine Economics," Journal of Wine Economics, Cambridge University Press, vol. 7(1), pages 1-33, May.
    • Handle: RePEc:cup:jwecon:v:7:y:2012:i:01:p:1-33_00
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    Citations

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    Cited by:

    1. Jean-Marie Cardebat & Paola Corsinovi & Davide Gaeta, 2018. "Do Top 100 wine lists provide consumers with better information?," Economics Bulletin, AccessEcon, vol. 38(2), pages 983-994.
    2. Elie Bouri & Tsangyao Chang & Rangan Gupta, 2016. "Testing the Efficiency of the Wine Market using Unit Root Tests with Sharp and Smooth Breaks," Working Papers 201664, University of Pretoria, Department of Economics.
    3. Ashenfelter, Orley & Storchmann, Karl, 2014. "Wine and Climate Change," Working Papers 164854, American Association of Wine Economists.
    4. Victor Ginsburgh, 2016. "On Judging Art and Wine," Working Papers ECARES ECARES 2016-21, ULB -- Universite Libre de Bruxelles.
    5. Fabien Candau & Florent Deisting & Julie Schlick, 2017. "How Income and Crowding Effects Influence the World Market for French Wines," The World Economy, Wiley Blackwell, vol. 40(5), pages 963-977, May.
    6. Aytaç, Beysül & Hoang, Thi-Hong-Van & Mandou, Cyrille, 2016. "Wine: To drink or invest in? A study of wine as an investment asset in French portfolios," Research in International Business and Finance, Elsevier, vol. 36(C), pages 591-614.
    7. Lei Jin, 2018. "A Study on Consumption of European Red Wine in China (1680-1840): state of the art, questions, hypothesis, sources and methodology," Working Papers 18.02, Universidad Pablo de Olavide, Department of Economics, Quantitative Methods and Economic History.
    8. De Salvo, Maria & Begalli, Diego & Capitello, Roberta & Signorello, Giovanni, 2015. "A spatial micro-econometric approach to estimating climate change impacts on wine firm performance: A case study from Moldavia region, Romania," Agricultural Systems, Elsevier, vol. 141(C), pages 48-57.
    9. Masset, Philippe & Weisskopf, Jean-Philippe & Faye, Benoît & Le Fur, Eric, 2016. "Red obsession: The ascent of fine wine in China," Emerging Markets Review, Elsevier, vol. 29(C), pages 200-225.
    10. Bargain, Olivier & Cardebat, Jean-Marie & Vignolles, Alexandra, 2016. "Crowdfunding in Wine," Working Papers 234638, American Association of Wine Economists.

    More about this item

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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