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Have policy distortions spilled over across wine markets? Evidence from the French wine sector

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  • Evens Salies

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

  • Bodo Steiner

    (UCC - University College Cork)

Abstract

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.

Suggested Citation

  • Evens Salies & Bodo Steiner, 2011. "Have policy distortions spilled over across wine markets? Evidence from the French wine sector," Working Papers hal-03461418, HAL.
    • Handle: RePEc:hal:wpaper:hal-03461418
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03461418
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    References listed on IDEAS

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    1. Ashenfelter, Orley, 2010. "Predicting the Quality and Prices of Bordeaux Wine," Journal of Wine Economics, Cambridge University Press, vol. 5(1), pages 40-52, April.
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    More about this item

    Keywords

    Common Market Organisation for wines; distillation; spill-over effects; quality downgrading; France; heterogeneous panel;
    All these keywords.

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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