Why is Expert Opinion on Wine Valueless?
Author InfoJames J. Fogarty (Department of Economics, The University of Western Australia) Abstract This paper presents an improved hedonic price estimate for wine sold in the Australian retail market. In the model developed, concepts from viticulture and wine tasting theory have been drawn upon to ensure both estimation technique, and variable selection are theoretically sound. Approach the estimation question in this manner has provided important new insights into domestic wine pricing. The empirical results presented suggest: (i) objective characteristics and long-term quality ratings explain price; (ii) annual wine quality ratings do not influence price; and (iii) OLS, not 2SLS, is the most appropriate estimation technique. Download InfoTo download: If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note
