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Introduction to the Issue

Published online by Cambridge University Press:  26 April 2018

Karl Storchmann*
Affiliation:
New York University
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Abstract

Type
Introduction
Copyright
Copyright © American Association of Wine Economists 2018 

This issue of the Journal of Wine Economics opens with “Wine Industry Campaign Contributions and Wine Excise Taxes: Evidence from U.S. States” by Shree B. Pokharel (Pokharel, Reference Pokharel2018). Against the background of significant increases in campaign contributions from the wine industry to officials running for state offices, the author hypothesizes that wine-industry special interests influence state wine excise taxes. Drawing on state-level campaign contributions data, she finds statistical evidence that campaign contributions affect wine excise taxes and that wine excise taxes exhibit some degree of spatial dependence. “On average, the increases in campaign contributions from the wine industry in a state results in a decrease in wine excise taxes in the given state and its neighboring states.”

Building on a prior paper on the hedonics of fine water prices published in this Journal (Capehart, Reference Capehart2015), Kevin W. Capehart and Elena C. Berg analyze whether consumers can distinguish among different bottled waters in blind tastings in “Fine Water: A Blind Taste Test” (Capehart and Berg, Reference Capehart and Berg2018). They run various blind tasting experiments with about 100 subjects. One of their main findings is that subjects are not better than random at distinguishing various waters including tap water. When rating bottled waters and tap water, some subjects preferred the inexpensive tap water to the highly priced bottled waters. On average, more expensive waters were not rated higher than less expensive ones. In fact, the authors found the correlation between water rating and pricing to be slightly negative.

In the third paper of this issue, Olivier Bargain, Jean-Marie Cardebat, and Alexandra Vignolles draw on original survey data to analyze the determinants of “Crowdfunding in the Wine Industry” (Bargain, Cardebat, and Vignolles, Reference Bargain, Cardebat and Vignolles2018). Among others, their findings suggest that subjects that regularly use the internet and have a general interest in crowdfunding are more likely to invest in wine projects than people that only have an interest in wine. They also find that potential funders prefer equity over in-kind rewards.

The fourth paper, by Geir Wæhler Gustavsen and Kyrre Rickertsen, is entitled “Wine Consumption in Norway: An Age-Period-Cohort Analysis” (Gustavsen and Rickertsen, Reference Gustavsen and Rickertsen2018). The authors estimate age-period-cohort (APC) logit models using data from a large repeated cross-sectional survey over the period 1991–2015 to model the rapid increase in Norwegian per capita wine consumption. The estimation results indicate substantial effects of the APC variables as well as income, availability, and attitudes. The simulation results indicate that wine consumption frequency increases by age, especially for younger cohorts. As a result, wine consumption in Norway is expected to increase.

This issue closes with two short papers or comments, respectively. Marc F. Luxen (Luxen, Reference Luxen2018) updates and expands Ashton's paper published in the Journal of Wine Economics (Ashton, Reference Ashton2013). He finds that “critics agree more about what they do not like. … In wines more than 100 euro there is no correlation between ratings and price.”

Terence C. Mills (Mills, Reference Mills2018) refers to a paper by Holmes, A. J., and Anderson, K.’s Journal of Wine Economics article on “Convergence in national alcohol consumption patterns: New global indicators” (Holmes and Anderson, Reference Holmes and Anderson2017). He re-analyses the data using techniques appropriate for a composition and “introduces a statistic that can validly track the variation in national shares around the global mean through time. This variability statistic shows that such convergence of national alcohol patterns has clearly taken place over the period 1961 to 2014 and thus confirms Holmes and Anderson's findings using a valid statistical approach.”

References

Ashton, R.H. (2013). Is there consensus among wine quality ratings of prominent critics? An empirical analysis of red Bordeaux, 2004–2010. Journal of Wine Economics, 8(2), 225234.Google Scholar
Bargain, O., Cardebat, J.-M., and Vignolles, A. (2018). Crowdfunding in the wine industry. Journal of Wine Economics, 13(1), 5782.Google Scholar
Capehart, K.W. (2015). Fine water: A hedonic pricing approach. Journal of Wine Economics, 10(2), 129150.Google Scholar
Capehart, K.W., and Berg, E.C. (2018). Fine Water: A Blind Taste Test. Journal of Wine Economics, 13(1), 2040.Google Scholar
Gustavsen, G.W., and Rickertsen, K. (2018). Wine consumption in Norway: An age-period-cohort analysis. Journal of Wine Economics, 13(1), 4156.Google Scholar
Holmes, A.J., and Anderson, K. (2017). Convergence in national alcohol consumption patterns: New global indicators. Journal of Wine Economics, 12(2), 117148.CrossRefGoogle Scholar
Luxen, M.F. (2018). Consensus between ratings of red Bordeaux wines by prominent critics and correlations with prices 2004–2010 and 2011–2016: Ashton revisited and expanded. Journal of Wine Economics, 13(1), 8391.Google Scholar
Mills, T.C. (2018). Is there convergence in national alcohol consumption patterns? Evidence from a compositional time series approach. Journal of Wine Economics, 13(1), 9298.Google Scholar
Pokharel, S.P. (2018). Wine industry campaign contributions and wine excise taxes: Evidence from U.S. States. Journal of Wine Economics, 13(1), 319.Google Scholar