The Informational Content of Geographical Indications

Jean-Sauveur Ay

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Abstract: Geographical indications (GIs) convey information about the place of production as a proxy for the attributes of agricultural products. We define the informational content of the GI proxy as its capacity to describe the tangible characteristics of production sites, instead of random noise or intangible factors from political bargaining about designation (i.e., lobbying effects). We estimate econometrically the informational content of wine‐related GIs for the Côte d'Or region of Burgundy, France. We show that GIs signal vineyard attributes with high precision, while we find some persistent bias from lobbying effects. We also study alternative classifications, from history and from simulations, which reveal a significant increase in the informational content of GIs over the last hundred years or so, and provide guidelines for better designated GIs in the future.

Keywords: Food certification; semi‐parametric model; strategic quality disclosure; variance decomposition; wine economics (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

Published in American Journal of Agricultural Economics, 2020, online, ⟨10.1111/ajae.12100⟩

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Journal Article: The Informational Content of Geographical Indications (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02883781

DOI: 10.1111/ajae.12100

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