NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Globalization and Taste Convergence: The Case of Wine and Beer

Joshua Aizenman, Eileen L. Brooks

NBER Working Paper No. 11228
Issued in March 2005
NBER Program(s):   ITI

This paper investigates changes in cultural consumption patterns for a low concentration industry: wine and beer. Using data on 38 countries from 1963-2000, there is clear convergence in the consumption of wine relative to beer between 1963 and 2000. Convergence occurs even more quickly within groups of countries that have a higher degree of integration. A key prediction of international trade is confirmed in the data: greater trade integration weakens the association between production and consumption patterns -- although the relative consumption of wine can be explained well in 1963 by grape production and latitude, these variables are much less significant in 2000. Despite these "scientific" explanations for the consumption of wine, there is also a cultural angle to wine consumption. While the relative wine consumption of France and Germany is converging, several Latin American countries fail to converge. The patterns of convergence are consistent with dynamics of adjustment in an overlapping generation habit formation model.

download in pdf format
   (273 K)

email paper

This paper is available as PDF (273 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w11228

Published: Joshua Aizenman & Eileen Brooks, 2008. "Globalization and Taste Convergence: the Cases of Wine and Beer," Review of International Economics, Blackwell Publishing, vol. 16(2), pages 217-233, 05.

Users who downloaded this paper also downloaded these:
Saffer w3200 Alcohol consumption and Tax Differentials Between Beer, Wine and Spirits
Morton and Podolny w6743 Love or Money? The Effects of Owner Motivation in the California Wine Industry
Anderson and van Wincoop w10480 Trade Costs
Ashenfelter, Hosken, and Weinberg w19353 Efficiencies Brewed: Pricing and Consolidation in the U.S. Beer Industry
Saffer and Grossman w1914 Beer Taxes, the Legal Drinking Age, and Youth Motor Vehicle Fatalities
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us