La capitalisation du prix des vins dans le prix des vignes en Côte-d’Or

The prices of vineyards with a geographical indication (GI) have greatly increased during the last decades, to the point of questioning their connection to returns from wine production. In this article, we use the seminal capitalization model to compare the prices observed during vineyard sales to economic returns estimated from wine prices. We obtain that vineyard prices between GIs increase more strongly than associated returns. We show that this disconnection can be explained by portfolio effects, stemming from the supply diversification made possible by the purchase of new vineyards. On the other hand, the wine price dynamics are not significantly different from those predicted by the model, which goes against speculation on vineyard prices.