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Modeling Grape Price Dynamics in Mendoza: Lessons for Policymakers

  • German Puga (a1), James Fogarty (a2), Atakelty Hailu (a3) and Alejandro Gennari (a4)

Abstract

Mendoza is the main wine-producing province of Argentina, and the government is currently implementing a range of policies that seek to improve grape grower profitability, including a vineyard replanting program. This study uses a dataset of all grape sales recorded in Mendoza from 2007 to 2018, totaling 90,910 observations, to investigate the determinants of grape prices. Key findings include: smaller volume transactions receive lower-average prices per kilogram sold; the discount for cash payments is higher in less-profitable regions; and the effect of wine stock levels on prices is substantial for all varieties. Long-run predicted prices are also estimated for each variety, and region; and these results suggest that policymakers should review some of the varieties currently used in the vineyard replanting program. (JEL Classifications: Q12, Q13, Q18)

Copyright

Corresponding author

e-mail: james.fogarty@uwa.edu.au (corresponding author).

Footnotes

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The authors thank an anonymous referee and the editorial team at JWE (especially Karl Storchmann) for their comments and assistance in progressing this paper to its final version.

Footnotes

References

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Keywords

Modeling Grape Price Dynamics in Mendoza: Lessons for Policymakers

  • German Puga (a1), James Fogarty (a2), Atakelty Hailu (a3) and Alejandro Gennari (a4)

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