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Is Globalization Good for Wine Drinkers in the United States?*

Published online by Cambridge University Press:  08 June 2012

Omer Gokcekus  and
Andrew Fargnoli
Omer Gokcekus
Affiliation:
John C. Whitehead School of Diplomacy and International Relations, Seton Hall University, S. Orange, NJ 07079,USA; Tel.: 973–313–6272, fax: 973–275–2519, email: [email protected].
Andrew Fargnoli
Affiliation:
John C. Whitehead School of Diplomacy and International Relations, Seton Hall University, S. Orange, NJ 07079, USA.
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Abstract

To determine whether globalization is good for wine drinkers in the U.S., we examine the Wine Spectator's annual Top 100 lists, published since 1988. During this period, the average real price for these wines decreases from $43 to $26. Quality is consistent at around 93 points. Variety increases from six to twelve countries; the share of countries dominating the early lists declines from 95% to 75% over time. Our regression analysis indicates that when a New-New World wine replaces an Old World one, the average real price of the Top 100 list falls by 2.5%. (JEL Classification: F120, F140, C200)

“My only regret in life is that I did not drink more champagne.” (John Maynard Keynes) (Harod, 1951, p. 15)

Type
Articles
Information
Journal of Wine Economics , Volume 2 , Issue 2 , Fall 2007 , pp. 187 - 195
Copyright
Copyright © American Association of Wine Economists 2007

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