Why is Expert Opinion on Wine Valueless?
This paper presents an improved hedonic price estimate for wine sold in the Australian retail market. In the model developed, concepts from viticulture and wine tasting theory have been drawn upon to ensure both estimation technique, and variable selection are theoretically sound. Approach the estimation question in this manner has provided important new insights into domestic wine pricing. The empirical results presented suggest: (i) objective characteristics and long-term quality ratings explain price; (ii) annual wine quality ratings do not influence price; and (iii) OLS, not 2SLS, is the most appropriate estimation technique.
|Date of creation:||2002|
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147769, Australian Agricultural and Resource Economics Society.
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- Oczkowski, Edward A., 1994. "A Hedonic Price Function For Australian Premium Table Wine," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 38(01), April.
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- Oczkowski, Edward, 2001. "Hedonic Wine Price Functions and Measurement Error," The Economic Record, The Economic Society of Australia, vol. 77(239), pages 374-82, December.
- Schamel, Guenter & Anderson, Kym, 2001. "Wine Quality and Regional Reputation: Hedonic Prices for Australia and New Zealand," 2001 Conference (45th), January 23-25, 2001, Adelaide 125877, Australian Agricultural and Resource Economics Society.
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