The price of wine

A-Tier
Journal: Journal of Financial Economics
Year: 2015
Volume: 118
Issue: 2
Pages: 431-449

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Using historical price records for Bordeaux Premiers Crus, we examine the impact of aging on wine prices and the long-term investment performance of fine wine. In line with the predictions of an illustrative model, young maturing wines from high-quality vintages provide the highest financial returns. Past maturity, famous châteaus deliver growing non-pecuniary benefits to their owners. Using an arithmetic repeat-sales regression over 1900–2012, we estimate a real financial return to wine investment (net of storage costs) of 4.1%, which exceeds bonds, art, and stamps. Returns to wine and equities are positively correlated. Finally, we find evidence of in-sample return predictability.

Technical Details

RePEc Handle
repec:eee:jfinec:v:118:y:2015:i:2:p:431-449
Journal Field
Finance
Author Count
3
Added to Database
2026-01-25