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Estimating the Demand for Wine Using Instrumental Variable Techniques 31
Cuellar, Steven; Huffman, Ryan.
The demand for wine is generally estimated on an aggregate level as a single commodity. However, as recent history shows us, the demand for wine not only varies considerably by varietal, but also by price point within each varietal. As a result, although estimates of the demand for wine may be beneficial to the wine industry as a whole, they provide little benefit to individual wine producers. This paper seeks to overcome the limitations of prior research on the demand for wine by providing estimates for the demand for wine by varietal and price point. We also provide estimates of own price effects, income effects as well as cross price effects by color, varietal and price point. Problems of endogeneity inherent in demand estimation are corrected by...
Tipo: Working or Discussion Paper Palavras-chave: Pooled Cross Section Time Series Data; Instrumental Variable Regression; Wine Demand; Demand and Price Analysis; Research Methods/ Statistical Methods.
Ano: 2008 URL: http://purl.umn.edu/44085
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THE SIDEWAYS EFFECT: A TEST FOR CHANGES IN THE DEMAND FOR MERLOT AND PINOT NOIR WINES 31
Cuellar, Steven; Karnowsky, Dan; Acosta, Frederick.
This paper examines the effect of the movie Sideways on US wine consumption. Specifically, we examine the effects of the movie on the consumption of Merlot, which is derided in the movie and the effect on Pinot Noir, which is praised. We examine the trends in consumption before and after the movie and perform statistical tests for structural changes in consumption. We also estimate demand functions for both Merlot and Pinot Noir and test for differences in their demands before and after the movie. Finally, we test for changes in consumption of each varietal by price point.
Tipo: Working or Discussion Paper Palavras-chave: Sideways; Chow Test; Demand Estimation; Demand and Price Analysis.
Ano: 2008 URL: http://purl.umn.edu/44086
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