Natural Endowments, Production Technologies and the Quality of Wines in Bordeaux: Does Terroir Matter?

16 Pages Posted: 30 May 2008  

Olivier Gergaud

KEDGE - Bordeaux Business School

Victor A. Ginsburgh

Catholic University of Louvain (UCL) - Center for Operations Research and Econometrics (CORE); Université Libre de Bruxelles (ULB) - European Center for Advanced Research in Economics and Statistics (ECARES)

Date Written: 0000

Abstract

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.

Suggested Citation

Gergaud, Olivier and Ginsburgh, Victor A., Natural Endowments, Production Technologies and the Quality of Wines in Bordeaux: Does Terroir Matter? (0000). The Economic Journal, Vol. 118, Issue 529, pp. F142-F157, June 2008. Available at SSRN: https://ssrn.com/abstract=1139197 or http://dx.doi.org/10.1111/j.1468-0297.2008.02146.x

Olivier Gergaud (Contact Author)

KEDGE - Bordeaux Business School ( email )

Domaine de Luminy - BP 921
BP 921
Marseille, PACA 13288
France

Victor A. Ginsburgh

Catholic University of Louvain (UCL) - Center for Operations Research and Econometrics (CORE) ( email )

34 Voie du Roman Pays
1348 Louvain-la-Neuve, 1348
Belgium
+32 2 650 3846 (Phone)
+32 2 650 4012 (Fax)

Université Libre de Bruxelles (ULB) - European Center for Advanced Research in Economics and Statistics (ECARES) ( email )

Ave. Franklin D Roosevelt, 50 - C.P. 114
Brussels, B-1050
Belgium
+32 2 650 3839/4 (Phone)
+32 2 650 3595 (Fax)

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