Wine vs. the Weather : Can Econometrics Pip the Palate?

Wine lovers have long known that the quality of their favorite libation is variable: it depends on, among other things, the geography and geology of the vineyard, the type of grape and how it is grown and harvested, and the weather in the year of its harvest. This variation in quality is reflected in auction prices, with good vintages commanding significantly higher prices than bad vintages. In this article, we show how the dependence between the price of Bordeaux wines has evolved over time, and document various phenomena related to the weather in Bordeaux and the prices of wines at auctions. In particular, we show that prior to the 1972 vintage, older wines are more expensive than younger wines, but for newer vintages, the relationship is reversed