Quality Sorting and Trade: Firm-Level Evidence for French Wine

Matthieu Crozet, Keith Head and Thierry Mayer

Working Papers from CEPII research center

Abstract: Firm-level regressions show that Champagne producers that receive better ratings from wine guides also export to more markets, charge higher prices, and sell more in each market. Our method corrects for a severe selection bias predicted by the model. By using direct measures of quality, we can recover estimates of parameters from a Melitz-based model of heterogeneous firms. We then regress averages of the quality, price, and quantity shipped to a country on measures of its attractiveness and entry costs. Champagne exhibits quality-sorting: more attractive markets tend to have lower average qualities and prices, but higher quantities.

Keywords: GRAVITY MODEL; HETEROGENEITY; QUALITY; INTERNATIONAL TRADE (search for similar items in EconPapers)
JEL-codes: F12 F14 F17 L11 L15 (search for similar items in EconPapers)
Date: 2009-07
New Economics Papers: this item is included in nep-agr, nep-cul and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (39)

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Related works:
Journal Article: Quality Sorting and Trade: Firm-level Evidence for French Wine (2012)
Working Paper: Quality sorting and trade: Firm-level evidence for French wine (2012)
Working Paper: Quality sorting and trade: Firm-level evidence for French wine (2012)
Working Paper: Quality sorting and trade: Firm-level evidence for French wine (2012)
Working Paper: Quality sorting and trade: Firm-level evidence for French wine (2012)
Working Paper: QUALITY SORTING AND TRADE: FIRM-LEVEL EVIDENCE FOR FRENCH WINE (2009)
Working Paper: Quality sorting and trade: Firm-level evidence for French wine (2009)
Working Paper: Quality sorting and trade: Firm-level evidence for French wine (2009)
Working Paper: Quality sorting and trade: Firm-level evidence for French wine (2009)
Working Paper: Quality sorting and trade: Firm-level evidence for French wine (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:cii:cepidt:2009-14

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