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An Analysis of U.S. Direct Wine Shipment Laws

Author

Listed:
  • Nelson Barber

    (Texas Tech University)

  • Tim Dodd

    (Texas Tech University)

Abstract

U.S. Prohibition was repealed in 1933 placing control of alcohol to the fifty states. This resulted in explosive growth of wholesalers creating a highly competitive environment. In contrast, small wineries increased dramatically. States allowed wine producers to ship directly to consumers within and without their states. Wholesalers demanded states enforce their laws prohibiting importation of alcohol. The U.S. Supreme Court ruled in 2005 the Twenty- first Amendment and the Commerce Clause should be read together. State laws discriminating against interstate commerce in alcohol were unconstitutional. State laws are changing. The problem is not one of protectionism towards abuses of alcohol, but rather towards intra-state commerce based on the legacy of Prohibition.

Suggested Citation

  • Nelson Barber & Tim Dodd, . "An Analysis of U.S. Direct Wine Shipment Laws," Enometrica, Enometrica - Review of the Vineyard Data Quantification Society (VDQS) and the European Association of Wine Economists (EuAWE) - Macerata University, Faculty of Communications.
    • Handle: RePEc:mcr:jenome:wpaper00005
    as

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    More about this item

    Keywords

    Prohibition; Direct Wine Shipments;

    JEL classification:

    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • M38 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Government Policy and Regulation
    • N42 - Economic History - - Government, War, Law, International Relations, and Regulation - - - U.S.; Canada: 1913-

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