IDEAS home Printed from https://ideas.repec.org/p/ahe/dtaehe/2204.html
   My bibliography  Save this paper

The Fruit of Regulation: Wine, Regulations, Subsidies, Quality and Cooperatives in Franco's Spain and Beyond

Author

Listed:
  • Samuel Garrido

    (Universitat Jaume I, Departamento de Economia, España)

Abstract

Cooperative wineries are one of the cornerstones of the wine industry in Europe today. To explain how they reached this condition, I use the case of Spain and pay special attention to the period in which they took off in the country, the Franco dictatorship (1939-1975). Wine economists often believe that cooperatives produce mediocre wines because they cannot avoid the opportunistic behaviour of their members. I argue that they can prevent it and that the poor quality of their wine in some provinces was the result of the perverse stimuli provided by a badly designed market regulation policy.

Suggested Citation

  • Samuel Garrido, 2022. "The Fruit of Regulation: Wine, Regulations, Subsidies, Quality and Cooperatives in Franco's Spain and Beyond," Documentos de Trabajo (DT-AEHE) 2204, Asociación Española de Historia Económica.
    • Handle: RePEc:ahe:dtaehe:2204
    as

    Download full text from publisher

    File URL: https://media.timtul.com/media/web_aehe/DT-AEHE-2204_20240108092728.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Williams,Jeffrey C. & Wright,Brian D., 2005. "Storage and Commodity Markets," Cambridge Books, Cambridge University Press, number 9780521023399, September.
    2. Storchmann, Karl, 2018. "Introduction to the Issue: Wine Cooperatives," Journal of Wine Economics, Cambridge University Press, vol. 13(3), pages 239-242, August.
    3. Storchmann, Karl, 2018. "Introduction to the Issue," Journal of Wine Economics, Cambridge University Press, vol. 13(2), pages 117-118, May.
    4. Santos-Arteaga, Francisco J. & Schamel, Günter, 2018. "Organizational Form and Payoff Imbalances in an Aggrievement Model: Cooperatives versus Privately Owned Wineries," Journal of Wine Economics, Cambridge University Press, vol. 13(3), pages 263-281, August.
    5. Valette, Justine & Amadieu, Paul & Sentis, Patrick, 2018. "Cooperatives versus Corporations: Survival in the French Wine Industry," Journal of Wine Economics, Cambridge University Press, vol. 13(3), pages 328-354, August.
    6. Henriksen, Ingrid & Hviid, Morten & Sharp, Paul, 2012. "Law and Peace: Contracts and the Success of the Danish Dairy Cooperatives," The Journal of Economic History, Cambridge University Press, vol. 72(1), pages 197-224, March.
    7. Dieter Pennerstorfer & Christoph R. Weiss, 2013. "Product quality in the agri-food chain: do cooperatives offer high-quality wine?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 40(1), pages 143-162, February.
    8. Paul Amadieu & Justine Valette & Patrick Sentis, 2018. "Cooperatives versus Corporations: Survival in the French Wine Industry," Post-Print hal-01941298, HAL.
    9. Wright, Brian, 2001. "Storage and price stabilization," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 14, pages 817-861, Elsevier.
    10. Pierre Bartoli, 1984. "La politique viticolé communautaire, analyse et bilan," Économie rurale, Programme National Persée, vol. 164(1), pages 34-44.
    11. Francisco J. Medina-Albaladejo & Jordi Planas, 2020. "Las bodegas cooperativas y la comercialización del vino en España durante el siglo XX," Investigaciones de Historia Económica - Economic History Research (IHE-EHR), Journal of the Spanish Economic History Association, Asociación Española de Historia Económica, vol. 16(01), pages 23-34.
    12. Storchmann, Karl, 2018. "Introduction to the Issue," Journal of Wine Economics, Cambridge University Press, vol. 13(1), pages 1-2, February.
    13. Meloni, Giulia & Swinnen, Johan, 2013. "The Political Economy of European Wine Regulations," Journal of Wine Economics, Cambridge University Press, vol. 8(3), pages 244-284, December.
    14. A. Colin Cameron & Pravin K. Trivedi, 2010. "Microeconometrics Using Stata, Revised Edition," Stata Press books, StataCorp LP, number musr, March.
    15. Paolo Roma & Giuseppe Di Martino & Giovanni Perrone, 2013. "What to show on the wine labels: a hedonic analysis of price drivers of Sicilian wines," Applied Economics, Taylor & Francis Journals, vol. 45(19), pages 2765-2778, July.
    16. Samuel Garrido, 2014. "Plenty of trust, not much cooperation: social capital and collective action in early twentieth century eastern Spain," European Review of Economic History, European Historical Economics Society, vol. 18(4), pages 413-432.
    17. Justine Valette & Paul Amadieu & Patrick Sentis, 2018. "Cooperatives versus Corporations: Survival in the French Wine Industry," Post-Print hal-02428526, HAL.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Samuel Garrido, 2022. "Buffer stocks, wine quality, and wine cooperatives in Franco’s Spain and beyond," Working Papers 2022/11, Economics Department, Universitat Jaume I, Castellón (Spain).
    2. Damien Rousselière, 2019. "A Flexible Approach to Age Dependence in Organizational Mortality: Comparing the Life Duration for Cooperative and Non-Cooperative Enterprises Using a Bayesian Generalized Additive Discrete Time Survi," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(4), pages 829-855, December.
    3. Gardner, Justin G. & Franken, Jason R.V. & Boerngen, Maria A., 2022. "A Research Agenda for Cooperatives," Journal of Cooperatives, NCERA-210, vol. 36.
    4. Timothy Waring & Taylor Lange & Sujan Chakraborty, 2022. "Institutional adaptation in the evolution of the ‘co-operative principles’," Journal of Evolutionary Economics, Springer, vol. 32(1), pages 333-365, January.
    5. Hansen, Rebecca & Hess, Sebastian, 2021. "Vermarkten Winzergenossenschaften weniger erfolgreich als andere Unternehmensformen? Hedonische Preisanalysen im Modellvergleich," 61st Annual Conference, Berlin, Germany, September 22-24, 2021 317050, German Association of Agricultural Economists (GEWISOLA).
    6. Hansen, Rebecca & Hess, Sebastian, 2021. "Are German Wine Cooperatives Less Successful at Marketing Their Wines Than Other Types of Organisation? A Comparison of Models Using Hedonic Price Analysis," 2021 Conference, August 17-31, 2021, Virtual 315155, International Association of Agricultural Economists.
    7. Samuel Garrido, 2018. "Why the first cooperative wineries produced poor quality wine, why they were so scarce and why they were set up: evidence from Spain," Documentos de Trabajo (DT-AEHE) 1807, Asociación Española de Historia Económica.
    8. Samuel Garrido, 2021. "Inequality and conflict as drivers of cooperation: the location of wine cooperatives in pre-1936 Spain," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 15(2), pages 443-476, May.
    9. Fabienne Féménia & Alexandre Gohin, 2010. "Faut-il une intervention publique pour stabiliser les marchés agricoles ? Revue des questions non résolues," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 91(4), pages 435-456.
    10. Kornher, Lukas & Kalkuhl, Matthias, 2013. "Food Price Volatility in Developing Countries and its Determinants," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 52(4), pages 1-32, November.
    11. Femenia, Fabienne, 2010. "Impacts of Stockholding Behaviour on Agricultural Market Volatility: A Dynamic Computable General Equilibrium Approach," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 59(3).
    12. Ingrid Henriksen & Eoin McLaughlin & Paul Sharp, 2015. "Contracts and cooperation: the relative failure of the Irish dairy industry in the late nineteenth century reconsidered," European Review of Economic History, European Historical Economics Society, vol. 19(4), pages 412-431.
    13. Albert Folch & Jordi Planas, 2019. "Cooperation, Fair Trade, and the Development of Organic Coffee Growing in Chiapas (1980–2015)," Sustainability, MDPI, vol. 11(2), pages 1-22, January.
    14. Donald F. Larson & Julian Lampietti & Christophe Gouel & Carlo Cafiero & John Roberts, 2014. "Food Security and Storage in the Middle East and North Africa," The World Bank Economic Review, World Bank, vol. 28(1), pages 48-73.
    15. Christophe Gouel & Sébastien Jean, 2015. "Optimal Food Price Stabilization in a Small Open Developing Country," The World Bank Economic Review, World Bank, vol. 29(1), pages 72-101.
    16. Eyal Dvir & Ken Rogoff, 2009. "The Three Epochs of Oil," Boston College Working Papers in Economics 706, Boston College Department of Economics.
    17. Christophe Gouel, 2012. "Agricultural Price Instability: A Survey Of Competing Explanations And Remedies," Journal of Economic Surveys, Wiley Blackwell, vol. 26(1), pages 129-156, February.
    18. Philip Abbott, 2014. "Biofuels, Binding Constraints, and Agricultural Commodity Price Volatility," NBER Chapters, in: The Economics of Food Price Volatility, pages 91-131, National Bureau of Economic Research, Inc.
    19. Hertel, Thomas W. & Reimer, Jeffrey J. & Valenzuela, Ernesto, 2005. "Incorporating commodity stockholding into a general equilibrium model of the global economy," Economic Modelling, Elsevier, vol. 22(4), pages 646-664, July.
    20. Gouel, Christophe, 2013. "Optimal food price stabilisation policy," European Economic Review, Elsevier, vol. 57(C), pages 118-134.

    More about this item

    Keywords

    wine; cooperative wineries; market regulation; buffer stocks; Franco's Spain; European Union;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ahe:dtaehe:2204. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Antònia Morey (email available below). General contact details of provider: https://edirc.repec.org/data/aeheeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.