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Have policy distortion spilled overacross wine markets ? : evidence from the french wine sector

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This paper investigates cross-market effects of policy instruments that were implemented in the table and quality wine market as one of the pillars of market intervention in Europe’s Common Market Organisation (CMO) for wine. We explore two hypotheses regarding the spill-over of distillation policy distortions and quality downgrading. Empirical evidence from France, the largest producer of quality wines in Europe, provides support for the hypothesis that distillation policy distortions in the quality wine market have spilledover to the table wine market. As predicted by our second hypothesis, we find evidence for quality downgrading, a phenomenon that has so far received little attention in the wine economics literature.

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File URL: http://www.ofce.sciences-po.fr/pdf/dtravail/WP2011-16.pdf
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Paper provided by Observatoire Francais des Conjonctures Economiques (OFCE) in its series Documents de Travail de l'OFCE with number 2011-16.

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Date of creation: Sep 2011
Handle: RePEc:fce:doctra:1116
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  1. Mah, Jai S., 2006. "The effect of export insurance subsidy on export supply: The experience of Japan," Journal of Asian Economics, Elsevier, vol. 17(4), pages 646-652, October.
  2. Richard E, Just & Darrell L. Heuth & Andrew Schmitz, 2004. "The Welfare Economics of Public Policy," Books, Edward Elgar Publishing, number 3342.
  3. Byron, R P & Ashenfelter, Orley, 1995. "Predicting the Quality of an Unborn Grange," The Economic Record, The Economic Society of Australia, vol. 71(212), pages 40-53, March.
  4. David M. Drukker, 2003. "Testing for serial correlation in linear panel-data models," Stata Journal, StataCorp LP, vol. 3(2), pages 168-177, June.
  5. Bodo Steiner, 2004. "French Wines on the Decline? Econometric Evidence from Britain," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(2), pages 267-288.
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