The impact of hail on retail wine sales: Evidence from Switzerland

Alexandre Mondoux

5 citations0/0 files storedJournal of Wine Economics

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Wine Industry and Tourism Economics of Agriculture and Food Markets Consumer Market Behavior and Pricing

Abstract

Abstract This paper uses a difference-in-differences approach to analyze the treatment effect of a hail weather shock in a specific Swiss wine-growing region. We exploit a natural experiment from Switzerland's Three Lakes wine region in 2013 and examine its impact on the country's retail market. We find statistically significant (1%-level) effects of –22.8% and +2.8% for the volume and price of wine consumed, respectively. These effects can be interpreted as average treatment effects, which is the difference in outcomes between treatment and control groups using a pre-post shock study methodology. Several robustness checks confirm the statistical significance of the estimated effects and the initial assumptions.

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References

1978Specification Tests in Econometrics 1992Earnings Losses of Displaced Workers 1993Minimum Wages and Employment: A Case Study of the Fast Food Industry in New Jersey and Pennsylvania 2003Outsourcing at Will: The Contribution of Unjust Dismissal Doctrine to the Growth of Employment Outsourcing 1978Estimating the Effect of Training Programs on Earnings 1985Using the Longitudinal Structure of Earnings to Estimate the Effect of Training Programs 2009The effect of weather on consumer spending 2014On the Causality and Cause of Returns to Organizational Status

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