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Covid-19 and fine wines: the ‘perfect blend’ for a severe headache?

Author

Listed:
  • Jean-Marie CARDEBAT
  • Philippe MASSET
  • Jean-Philippe WEISSKOPF

Abstract

Press reports have praised the stability of fine wine prices over recent weeks. While stock, and even gold prices, fell sharply since the beginning of the Covid-19 crisis, the Liv-ex Investables Wine index only dropped by 2 to 3%. However, we expect a sharp correction of fine wine prices over the upcoming weeks or months according to an analysis of the fundamental determinants of fine wine prices, and a comparison with previous crises.

Suggested Citation

  • Jean-Marie CARDEBAT & Philippe MASSET & Jean-Philippe WEISSKOPF, 2020. "Covid-19 and fine wines: the ‘perfect blend’ for a severe headache?," Bordeaux Economics Working Papers 2020-05, Bordeaux School of Economics (BSE).
    • Handle: RePEc:grt:bdxewp:2020-05
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    References listed on IDEAS

    as
    1. Bargain, Olivier, 2020. "French Wine Exports to China: Evidence from Intra-French Regional Diversification and Competition," Journal of Wine Economics, Cambridge University Press, vol. 15(2), pages 134-162, May.
    2. Cardebat, Jean-Marie & Figuet, Jean-Marc, 2019. "The Impact of Exchange Rates on French Wine Exports," Journal of Wine Economics, Cambridge University Press, vol. 14(1), pages 71-89, February.
    3. Dimson, Elroy & Rousseau, Peter L. & Spaenjers, Christophe, 2015. "The price of wine," Journal of Financial Economics, Elsevier, vol. 118(2), pages 431-449.
    4. James Fogarty, 2010. "The Demand For Beer, Wine And Spirits: A Survey Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 24(3), pages 428-478, July.
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    Keywords

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    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

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