An Overview of the Washington and Japanese Wine Markets

Purpose The paper aims to investigate the impact of economic policy uncertainty (EPU) (i.e. uncertainty due to government policies) on fine wine prices. Design/methodology/approach The paper uses the Baker et al. (2016) monthly news-based measure of EPU for the leading wine markets: the USA, the UK, France, Germany and China in conjunction with monthly fine wine pricing data from the London International Vintners Exchange (Liv-ex). The wine sub-indices used are the Liv-ex 500 (Bordeaux), Burgundy 150, Champagne 50, Rhone 100, Italy 100, California 50, Port 50 and Rest of the World 50. The Prais–Winsten and Cochrane–Orcutt regressions are used for our analyses to correct for effects of serial correlation. Time lags are chosen based on the appropriate information criterion. Findings Changes in EPU levels negatively impact changes in the Liv-ex 500 index for all our leading wine markets except France, the Champagne 50 index for the UK and the Burgundy 150 and the Rhone 100 indices for Germany, with the effects being significant for at least up to a quarter before EPU is detected. The authors did not find significant results for the EPU of France. Practical implications The paper aims to provide insights into whether EPU creates opportunities or threats for investors and wineries. Originality/value A forward-looking news-based EPU measure is used to gain insights into how the different Liv-ex sub-indices react to increases in uncertainty centered around government policies across a sample of different countries.

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Wine markets by country: 5-year data and decadal growth rates, 1961 to 2009

Global wine markets, 1961 to 2009: a statistical compendium ◽

10.1017/upo9780987073013.007 ◽

2012 ◽

pp. 125-214

Author(s):

Kym Anderson ◽

Signe Nelgen

Keyword(s):

Growth Rates ◽

Wine Markets

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Asia's evolving role in global wine markets

China Economic Review ◽

10.1016/j.chieco.2015.05.003 ◽

2015 ◽

Vol 35 ◽

pp. 1-14 ◽

Cited By ~ 19

Author(s):

Kym Anderson ◽

Glyn Wittwer

Keyword(s):

Wine Markets

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Guest Editor's Introduction to Symposium

Journal of Wine Economics ◽

10.1017/s1931436100000651 ◽

2009 ◽

Vol 4 (1) ◽

pp. 25-26

Author(s):

Jill J. McCluskey

Keyword(s):

Consumer Preferences ◽

Agricultural Economics ◽

State University ◽

Wine Quality ◽

Washington State University ◽

Competitive Firm ◽

The Impact ◽

Competitive Forces ◽

Special Symposium ◽

Wine Markets

The articles in this symposium analyze the economics of evolving international wine markets, including issues associated with taxes, measures of quality, reputation, consumer preferences, globalization, and emerging markets in China. This special symposium consists of peer-reviewed papers presented at the “Competitive Forces Affecting the Wine and Winegrape Industries: An International Conference on World Wine Markets,” sponsored by the Washington State University Impact Center, the Center for Wine Economics and Business of the Robert Mondavi Institute for Wine and Food Sciences and the Giannini Foundation of Agricultural Economics, University of California, in Davis, California, August 8–10, 2007, and the American Association of Wine Economists in Portland, Oregon, August 14–16, 2008.The first paper, by Rachael Goodhue, Jeffrey LaFrance and Leo Simon, provides a theoretical analysis of the impact of taxes on the quantity and quality produced by a competitive firm of goods like wine for which market value. They consider the effects of various tax systems on wine quality and quantity distortions.

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