What Determines the Future Value of an Icon Wine? New Evidence from Australia

Danielle Wood and Kym Anderson

Chapter 11 in The International Economics of Wine, 2019, pp 255-282 from World Scientific Publishing Co. Pte. Ltd.

Abstract: To what extent can the future price of icon wines be anticipated from information available at the time of their initial sale by wineries? Using a seemingly unrelated regression model we show that weather variables and changes in production techniques, along with the age of the wine, have significant power in explaining the secondary market price variation across different vintages of each of three icon Australian red wines. The results have implications for winemakers in determining the prices they pay for grapes and charge for their wines, and for consumers/wine investors as a guide to the prospective quality of immature icon wines.

Keywords: Wine Globalization; Australia's Wine Internationalization; Wine Markets in Asia; Wine Price Distortions; Modelling Global Wine Markets (search for similar items in EconPapers)
JEL-codes: L66 O13 (search for similar items in EconPapers)
Date: 2019
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Related works:
Journal Article: What Determines the Future Value of an Icon Wine? New Evidence from Australia* (2006)
Working Paper: What Determines the Future Value of an Icon Wine? New Evidence from Australia (2005)
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