AAWE, Economics Dept, New York University, 19 W 4th St, 6Fl., New York NY 10012aawe@wine-economics.org

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AAWE Working Paper No. 144 – Economics

AAWE Working Paper No. 144 – Economics

This paper attempts to understand the mechanism of an upward trend in wine consumption in Japan by analysing its trend and possible correlations with food-related consumptions. Through the panel and time-series analyses of wine consumption and food-item expenditures, and of wine consumption and food-service industry sales, we investigate whether wine consumption is correlated with food westernisation in Japan and whether wine is gaining its steady place in daily life of Japanese. Although not robust, we find supportive evidences for both, particularly for the second one. While on-premise consumption, in particular at reasonably priced diners, is estimated to be an important factor for growing wine consumption in Japan, there are possible evidences that home consumption of wine is increasing. It is also suggested that reasonably price wine, especially that of imported wine, are likely to be the key for future wine consumption in Japan.

AAWE Working Paper No. 143 – Economics

AAWE Working Paper No. 143 – Economics

This paper examines the impact of the recent high taxation policy on Anatolian wine production as well as the value added loss from the use of grapes for non-wine consumption. The results clearly indicate that the high taxation policy is significantly reducing the wine production in Turkey. The suggested policy option of increasing the wine production may create six times more revenue than the existing policy outcome. A possible feasible policy is to remove the lump sum tax from exports and encourage export-oriented ‘Anatolian Old World’ wine.

AAWE Working Paper No. 142 – Economics

AAWE Working Paper No. 142 – Economics

We examine the impact of aging on wine prices and the performance of wine as a long-term investment, using a unique historical database for five long-established Bordeaux wines that we construct from auction and dealer prices. We estimate the life-cycle price patterns with a regression model that avoids multicollinearity between age, vintage year, and time by replacing the vintage effects with annual data on production yields and weather quality. In line with the predictions of an illustrative model, we observe the highest rates of appreciation for young high-quality wines that are still maturing. The findings suggest that the non-financial “psychic return” to holding wines that are substantially beyond maturity is at least 1%. Using an arithmetic repeat-sales regression, we estimate an annualized return to wine investments (net of insurance and storage costs) of 4.1%, in real GBP terms, between 1900 and 2012. Wine underperforms equities over this period, but outperforms government bonds, art, and stamps. Wine and equity returns are positively correlated.

AAWE Working Paper No. 141 – Economics

AAWE Working Paper No. 141 – Economics

In 1985, the Commission chaired by Judge Klopper reported on the illegal import into South Africa of chardonnay clones, which turned out not to be chardonnay but auxerrois, an inferior cultivar (variety). This paper examines the Evidence before and the Report of the Commission, and the political and institutional context in which it took place.

AAWE Working Paper No. 140 – Economics

AAWE Working Paper No. 140 – Economics

Anthropologists have long documented substantial and persistent differences across so- cial groups in the preferences and taboos for particular foods. One natural question to ask is whether such food cultures matter in an economic sense. In particular, can culture constrain caloric intake and contribute to malnutrition? To answer this question, I first document that inter-state migrants within India consume fewer calories per Rupee of food expenditure com- pared to their non-migrant neighbors, even for households with very low caloric intake. I then form a chain of evidence in support of an explanation based on culture: that migrants make nutritionally-suboptimal food choices due to cultural preferences for the traditional foods of their origin states. First, I focus on the preferences themselves and document that migrants bring their origin-state food preferences with them when they migrate. Second, I link together the findings on caloric intake and preferences by showing that the gap in caloric intake between locals and migrants is related to the suitability and intensity of the migrants’ origin-state food preferences: the most adversely affected migrants (households in which both husband and wife migrated to a village where their origin-state preferences are unsuited to the local price vector) would consume 7 percent more calories if they possessed the same preferences as their neighbors.

AAWE Working Paper No. 139 – Economics

AAWE Working Paper No. 139 – Economics

There has been an increase in interest in local foods among final consumers in the United States, and there has also been a rise in offerings of local products in restaurants. Here we use Zagat Survey data and restaurant-specific menu information to estimate factors that influence the availability of New York State (NYS) wine in 1,401 NYS restaurants. We focus on wine because the production region is clearly labeled on the menu and because there is a burgeoning wine industry in NYS. Our econometric results indicate that décor ratings, cuisine styles, certain wine list characteristics, and distance to wine regions have a statistically significant impact on the likelihood of NYS restaurants serving local wine.

AAWE Working Paper No. 138 – Economics

AAWE Working Paper No. 138 – Economics

In this paper, we examine the effect of food prices on clinical measures of obesity, including body mass index (BMI) and percentage body fat (PBF) measures derived from bioelectrical impedance analysis (BIA) and dual energy x-ray absorptiometry (DXA), among youths ages 12 through 18. The empirical analyses employ data from various waves of the National Health and Nutrition Examination Survey (NHANES) merged with several food prices measured by county and year. This is the first study to consider clinically measured levels of body composition rather than BMI to investigate the effects of food prices on obesity among youths. We also examine whether the effects of food prices on body composition differ by gender and race/ethnicity. Our findings suggest that increases in the real price of one calorie in food for home consumption and the real price of fast-food restaurant food lead to improvements in obesity outcomes among youths. We also find that an increase in the real price of fruits and vegetables has negative consequences for these outcomes. Finally, our results indicate that measures of PBF derived from BIA and DXA are no less sensitive and in some cases more sensitive to the prices just mentioned than BMI.

AAWE Working Paper No. 137 – Economics

AAWE Working Paper No. 137 – Economics

Wine is a complex product. Preferences for it are not only highly heterogeneous throughout the population, but also amply susceptible to context. The objective of this study is to discover and measure these preferences, focusing on a set of non-sensory attributes of wine.

To identify the most relevant non-sensory attributes of wine, from the consumers’ standpoint we considered four sources: existing literature, a Delphi survey (applied to wine marketing experts), in- depth interviews and a web-page survey answered by fairly large sample of wine consumers. Not all sources were consistent on which attributes were the most important. Notably, consumers did not select price as a relevant attribute on the web survey, even though it had been considered relevant in the in-depth interviews. Finally, six wine attributes were selected for inclusion in a stated choice (SC) experiment: grape variety, alcohol level, label design, product recommendations, price and discounts.

AAWE Working Paper No. 136 – Business

AAWE Working Paper No. 136 – Business

The origins of the Argentinean wine industry can be traced to the Spanish colonial period and the establishment of the Virreinato del Rio de la Plata. However, the emergence of the modern wine industry is explained by the Italian and Spanish immigration of the late XIX century and by the contribution of European specialists hired by emergent Schools of Agriculture such as the Faculty of Agrarian Science from the National University of Cuyo, as it is known nowadays. The planting of French varieties (Cabernet Sauvignon, Merlot, Tannat and especially Malbec), Italian varieties (Barbera, Nebbiolo, Sangiovese, Bonarda) and Spanish ones (Tempranillo, Semillón, Pedro Giménez) took place simultaneously with the introduction of the railway in the provinces of Mendoza and San Juan thus favoring immigration and the diffusion of new growing and wine-making techniques. The irrigation system and water management organization also began at the time, giving a key contribution to the wine industry emergence. Big family wineries of Italian (Giol, Gargantini, Tittarelli, Cavagnaro, Filippini, Rutini, etc) and Spanish (Escorihuela, Arizu, Goyenechea, etc) origins were born, grew and consolidated in this period.

Massachusetts Wine Laws Violate the U.S. Constitution

Massachusetts Wine Laws Violate the U.S. Constitution

by Elliott Morss Introduction A recent report found that more wine is consumed per capita in Massachusetts than in any other US state. That might lead you to expect that Massachusetts wine laws would accommodate its wine drinkers. They don’t. In fact, a recent study[1] found that Massachusetts is one of 16 states with the…

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