Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Department of Economics, Aarhus School of Business, University of Aarhus Working Papers, Department of Economics, Aarhus School of Business, University of Aarhus

No 02-6:
What does California have in common with Finland, Norway and Sweden?

Jan Bentzen () and Valdemar Smith ()

Abstract: The aim of this paper is to analyse the retail prices on wine in different countries. In general, country-specific price differences on identical wines are expected to reflect differences in taxes, import prices, transportation and other costs. Also the competitive conditions on the retail markets in the relevant countries are important. Accordingly, lack of competition at the retail level, high import prices and high duties on wine all contribute to increase wine prices. Next, consumer prices on wine are expected to be relatively lowest in the producer country and even lower on the local markets in the producing region. The Nordic countries are located far away from California and they all tax wine higher than the State of California. Some, e.g. Finland, Norway and Sweden, have state monopoly in the retail trade of wine and spirits whereas the sales system for wine in Denmark is more in line with the Californian system. Based on price information at the retail level, the paper analyses the logic of the relative prices on identical Californian wine bought in California compared to Denmark, Finland, Norway and Sweden.

Keywords: Wine prices; Californian wines; wine taxes; (follow links to similar papers)

JEL-Codes: D40; L81; O57; (follow links to similar papers)

17 pages, May 1, 2002

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

02-6_jbvs.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Helle Vinbaek Stenholt ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:aareco:2002_006 This page was generated on 2014-12-14 19:20:36