Template-Type: ReDIF-Paper 1.0
Author-Name: Ferro Gustavo
Author-Name-First: Gustavo
Author-Name-Last: Ferro
Author-Name: Gatti Nicolás
Author-Name-First: Nicolás
Author-Name-Last: Gatti
Title: Explaining Wine Scores Through Stochastic Frontier Analysis
Abstract: Experts give scores to wines, which are quality proxies for marketers and buyers. The production of wine quality is explained by a set of observable objective attributes, plus another set of unobservable and subjective (sensory) features, and randomness. We use a Stochastic Frontier Approach (SFA) to understand whether objective and subjective (sensory) characteristics of wines explain the differences in wine scores. We estimate a wine quality
stochastic frontier production function, using a database of 1800 top-scored wines, in an 18 years-window encompassing objective determinants (price, production, year, grape, country, etcetera), being sensory aspects related to wine grading unobservable. We find that the variables included explain half of the “efficiency” in attaining scores and our results suggest that sensory variables may have a role in explaining inefficiency.
Length:  17 pages
Creation-Date:  2022-11
File-URL: https://aaep.org.ar/works/works2022/4621.pdf
File-Format: Application/pdf
Number: 4621
Classification-JEL: D61, L66
Handle: RePEc:aep:anales:4621