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Natural endowments, production technologies, and the quality of wines in Bordeaux. Is it possible to produce wine on paved roads?

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  • Gergaud, Olivier
  • Ginsburgh, Victor

Abstract

We study whether quality assessments made by wine experts and by consumers (based on prices obtained at auction between 1980 and 1992), can be explained by variables describing endowments (land characteristics, exposures of vineyards) and technologies (from grape varieties and picking, to bottled wines). However, since technological choices are likely to depend on endowments, the effects can only be identified using an instrumental variables approach. We show that technological choices affect quality much more than natural endowments, the effect of which is negligible.

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File URL: http://purl.umn.edu/37294
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Bibliographic Info

Paper provided by American Association of Wine Economists in its series Working Papers with number 37294.

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Date of creation: Apr 2007
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Handle: RePEc:ags:aawewp:37294

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Web page: http://www.wine-economics.org
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Related research

Keywords: wine production; wine quality; Crop Production/Industries; Demand and Price Analysis; Environmental Economics and Policy;

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  1. Joshua Angrist & Alan B. Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," NBER Working Papers 8456, National Bureau of Economic Research, Inc.
  2. GINSBURGH, Victor & MONZAK, M., 1992. "Red wines of Médoc: What is wine testing worth ?," CORE Discussion Papers 1992027, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. repec:fth:prinin:455 is not listed on IDEAS
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