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A “Sideways” Supply Response in California Winegrapes

Author

Listed:
  • Consoli, Sarah
  • Fraysse, Elizabeth A.
  • Slipchenko, Natalya
  • Wang, Yi
  • Amirebrahimi, Jahon
  • Qin, Zhiran
  • Yazma, Neil
  • Lybbert, Travis J.

Abstract

This paper explores growers’ supply response to the 2005 “Sideways effect” demand shock (Cuellar, Karnowsky, and Acosta, 2009) triggered by the 2004 release of the movie Sideways. We use a modified difference-in-difference approach to evaluate the supply response in California and regional supply response differences within California. We use U.S. Department of Agriculture data for the period 1999–2012 and find evidence of a supply response in the post-release period that is consistent with the “Sideways effect” on wine demand. The positive supply response for Pinot Noir is stronger than the negative response for Merlot and concentrated in lower value Central Valley vineyards. (JEL Classifications: D25, Q12)

Suggested Citation

  • Consoli, Sarah & Fraysse, Elizabeth A. & Slipchenko, Natalya & Wang, Yi & Amirebrahimi, Jahon & Qin, Zhiran & Yazma, Neil & Lybbert, Travis J., 2022. "A “Sideways” Supply Response in California Winegrapes," Journal of Wine Economics, Cambridge University Press, vol. 17(1), pages 42-63, February.
    • Handle: RePEc:cup:jwecon:v:17:y:2022:i:1:p:42-63_3
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    More about this item

    JEL classification:

    • D25 - Microeconomics - - Production and Organizations - - - Intertemporal Firm Choice: Investment, Capacity, and Financing
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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