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Natural endowments, production technologies and the quality of wines in Bordeaux. Does terroir matter?

Listed author(s):
  • Olivier Gergaud
  • Victor Ginsburgh

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. Copyright © The Author(s). Journal compilation © Royal Economic Society 2008.

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Paper provided by ULB -- Universite Libre de Bruxelles in its series ULB Institutional Repository with number 2013/99266.

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Date of creation: Jun 2008
Publication status: Published in: Economic journal (2008) v.118 n° 529,p.F142-F157
Handle: RePEc:ulb:ulbeco:2013/99266
Note: SCOPUS: ar.j
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  1. Orley C. Ashenfelter & Karl Storchmann, 2006. "Using a Hedonic Model of Solar Radiation to Assess the Economic Effect of Climate Change: The Case of Mosel Valley Vineyards," Working Papers 72, Princeton University, Department of Economics, Center for Economic Policy Studies..
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