Estimation of a Hedonic Price Equation for Bordeaux Wine: Does Quality Matter

Combris, Pierre; Lecocq, Sébastien; Visser, Michael

doi:10.1142/9789813232747_0007

Cited by 59 publications

(88 citation statements)

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“…23. Again, the R 2 is much higher than in comparable studies by Scott Morton and Podolny (1998) for Californian wines and by Combris et al (1997Combris et al ( , 2000 for Bordeaux and Burgundy wines.…”

Section: Data Estimation Procedures and Empirical Findingscontrasting

confidence: 55%

Does Ownership Matter? Empirical Evidence from the German Wine Industry

Frick

2018

Handbook of the Economics of Wine

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Section: Data Estimation Procedures and Empirical Findingscontrasting

confidence: 55%

Does Ownership Matter? Empirical Evidence from the German Wine Industry

Frick

2018

Handbook of the Economics of Wine

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“…There is a related strand of literature that attempts to explain the price of wine as a function of its characteristics in a cross-sectional hedonic regression framework; see Combris, et al (1997) for a recent case There is a related strand of literature that attempts to explain the price of wine as a function of its characteristics in a cross-sectional hedonic regression framework; see Combris, et al (1997) for a recent case…”

Section: But What About Wine?mentioning

confidence: 99%

“…10. There is a related strand of literature that attempts to explain the price of wine as a function of its characteristics in a cross-sectional hedonic regression framework; see Combris, et al (1997) for a recent case…”

Section: But What About Wine?mentioning

confidence: 99%

The Rate of Return on Investment in Wine

Burton

Jacobsen

2018

Handbook of the Economics of Wine

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Is wine an investment alternative to stocks and bonds? First, we review prior studies regarding the pecuniary rate of return to wine and other alternatives to financial assets. Next, we calculate the rate of return to holding red Bordeaux wine from 1986 to 1996 using a repeat-sale regression. Finally, we contrast the financial performance of wine, both on an aggregate basis and for various portfolios, to that of other asset classes. We conclude that wine does not yield greater returns than financial assets, especially when the volatility of returns and transaction costs are taken into account.Investments in art and other collectibles are generally deemed profitable, but empirical examinations of the relative attractiveness of noncapital good tangible assets relative to financial instruments have shown that art and other collectibles are not sound investments from a financial point of view. There is a large body of literature that calculates the rate of return on alternative asset classes and concludes with few exceptions that nonfinancial assets are not good financial investments. However, in the case of wine, the evidence is mixed: Collectors often maintain that the pecuniary rate of return on investments in wine is comparable to or exceeds investments in stocks and bonds, and economists have not reached a consensus vis-à-vis the relative attractiveness of wine.In this article we consider (1) how investment-grade wine compares to other alternative asset classes and (2) whether wine might be a viable investment alternative to stocks or bonds. First, we consider the results drawn from empirical investigations

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“…For example, Landon and Smith (1997) examine five different functions choosing the reciprocal square root form, Oczkowski (1994) reports a log-linear form, and Nerlove (1995) compares log-linear, log-log and Box-Cox transformations. The log-linear form has been applied in a number of published studies, including Oczkowski (1994Oczkowski ( , 2001, Nerlove (1995), and Combris et al . (1997).…”

Section: The Data and Hedonic Price Model (I) The Datamentioning

confidence: 99%