Wine Demand, Price Strategy, and Tax Policy

Steven T. Buccola and Loren VanderZanden

Review of Agricultural Economics, 1997, vol. 19, issue 2, 428-440

Abstract: Oregon wine producers recently have developed a niche in the market for premium wines, despite California's established quality image and productive capacity. In Portland, Oregon, the two states' wines are strong demand substitutes for one another. However, the red and white wines of each state are complementary, implying, for example, that if the price of Oregon reds rises, the demand for Oregon reds and Oregon whites is reduced. Red wine demands are much less sensitive to price changes than are white wine demands, corroborating the view that red wine consumers have more discriminating tastes than do white wine consumers. Increases in the state wine tax would bring very little deadweight loss: the dollar value of consumers' utility losses would not greatly exceed the state's revenue gain.

Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://hdl.handle.net/10.2307/1349750 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:revage:v:19:y:1997:i:2:p:428-440.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

More articles in Review of Agricultural Economics from Agricultural and Applied Economics Association Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ( this e-mail address is bad, please contact ) and Christopher F. Baum ().