Predicting the Quality and Prices of Bordeaux Wine

11 Pages Posted: 30 May 2008

See all articles by Orley Ashenfelter

Orley Ashenfelter

Princeton University - Industrial Relations Section; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Abstract

Bordeaux wines have been made in much the same way for centuries. This article shows that the variability in the quality and prices of Bordeaux vintages is predicted by the weather that created the grapes. The price equation provides a measure of the real rate of return to holding wines (about 2-3% per annum) and implies far greater variability in the early or 'en primeur' wine prices than is observed. The analysis provides a useful basis for assessing market inefficiency, the effect of climate change on the wine industry and the role of expert opinion in determining wine prices.

Suggested Citation

Ashenfelter, Orley C., Predicting the Quality and Prices of Bordeaux Wine. The Economic Journal, Vol. 118, Issue 529, pp. F174-F184, June 2008. Available at SSRN: https://ssrn.com/abstract=1139199 or http://dx.doi.org/10.1111/j.1468-0297.2008.02148.x

Orley C. Ashenfelter (Contact Author)

Princeton University - Industrial Relations Section ( email )

Princeton, NJ 08544-2098
United States
609-258-4040 (Phone)
609-258-2907 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
5
Abstract Views
4,217
PlumX Metrics