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

  • Gergaud, Olivier
  • Ginsburgh, Victor

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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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
Contact details of provider: Web page: http://www.wine-economics.org

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  1. Joshua Angrist & Alan Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Working Papers 834, Princeton University, Department of Economics, Industrial Relations Section..
  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).
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