AAWE Papers in Portland: Health Information and Wine Choice

During the past decade, it seems, we have been inundated with information regarding the health benefits or dangers of wine. However, associating wine and health is not new. The medical profession has recognized the healthful and nutritive properties of wine for thousands of years. Hippocrates recommended specific wines to purge fever, disinfect and dress wounds, as diuretics, or for nutritional supplements, around 450 B.C. On the
Wine
is a mild natural tranquilizer, serving to reduce anxiety and tension. As part
of a normal diet, wine provides the body with energy, with substances that aid
digestion, and with small amounts of minerals and vitamins. It can also
stimulate the appetite. In addition, wine serves to restore nutritional
balance, relieve tension, sedate and act as a mild euphoric agent to the
convalescent and especially the aged.
French paradox
Only when CBS’ news magazine "60 Minutes" reported in November, 1991,
the phenomenon that has come to be known as the French Paradox did
popular thinking of wine as medicine rather than toxin begin to return.
Typically, the diet of people in
Anti-Cancer & Coronary Benefits
Moderate consumption of red wine on a regular basis may be a
preventative against coronary disease and some forms of cancer. The chemical
components thought to be responsible are catechins, also known as flavanoids
and related to tannins . Catechins are believed to function as
anti-oxidants, preventing molecules known as "free-radicals" from
doing cellular damage. One particular form of flavinoid, called oligomeric
procyanidin, recently proved to prevent hardening of the arteries.

There are also compounds in grapes and wine (especially red wine, grape juice, dark beers and tea, but absent in white wine, light beers and spirits) called resveratrol and quercetin. Clinical and statistical evidence and laboratory studies have shown these may boost the immune system, block cancer formation, and possibly protect against heart disease and even prolong life.
One
recent study, published in the 2004 year-end edition of the American Journal of
Physiology, indicates that resveratrol also inhibits formation of a protein
that produces a condition called cardio fibrosis, which reduces the
heart's pumping efficiency when it is needed most, at times of stress. More
evidence suggests that wine dilates the small blood vessels and helps to
prevent angina and clotting. The alcohol in wine additionally helps balance
cholesterol towards the good type.
Research
is ongoing and it is a mistake for anyone to radically change their consumption
pattern based on preliminary data. A study of obese mice showed that doses of
resveratrol prolonged their lifespans, but for a human to duplicate this
prescription using wine, he would to drink over 250 gallons per day!
On
the other hand, many of these studies have been heavily criticised. Some of the
older studies have been attacked by critics who charged that the results were
biased because the abstainers studied included many people who were not
drinking because they were already in bad health, or were possibly abstaining
alcoholics. Others point at the income bias. Wine drinkers have higher incomes
than the rest of the population and live a healthier life in general.
AAWE Economics Paper:
Consumer Choice
Whatever
the truth is, the arrival of new information influences our choices. When the
news is out that red wines prolong you life -- who wants to stay with white
wine or even beer? Among the 14 sessions
at the Second Annual Conference of the American Association of Wine Economists in Portland from Aug 14-16, 2006, one is entirely devoted to “health and wine”; of course, from an
economics point of view.

Brenda Dyack of the Australian Bureau of Agricultural and Resource Economics (ABARE)
and Ellen Goddard of the
Here
is their abstract:
- Measurement
of the flow of new information about the health impact of consuming wine;
- Development
of Health Information Indicators for All Wine and for Red Wine based on the measured health information flow; and,
- Estimation
of the impact of health information change on consumption of four wine types
(red and white domestic and imported wines) using a two-stage translog demand
model for wine that incorporates the Health
Information Indicators.
The
approach to measuring information change developed here is novel; however, it
is an extension of the method used by others who have previously developed
proxy variables for the quantity of health information change based on counts
of articles. The new method involves scoring the flow of information. The score reflects both the quantity and the
quality of the information provided.
This
paper provides evidence to support the widely-held belief is that red has been
substituted for white wine due to increasing evidence that red wine provides
cardiovascular health benefits. Although there seem to have been many reports
linking red wine consumption to better health and it may seem like an obvious
cause and effect situation, until now, there has been no significant empirical
evidence to support the claim. The results provided here indicate that
consumers have made a significant and sustained change in behaviour in response
to information they received about healthy food choices. This means that consumers have:
- Received
enough information to induce a change in their beliefs;
- Trusted
the information they received;
- Changed their attitudes/beliefs about the good; and,
- The
change in attitude has been translated into an effective and substantial
change in demand for red and white wines.
The
implications of this kind of consumer response to information change for
consumers, governments and producers are not trivial. For other goods, recent concerns about food
safety and other health consequences of consumption have highlighted the impact
of consumer purchasing decisions on consumer health, producer profits and
government responsibility for reporting on health impacts of food consumption.
The Health Information Indicators
developed here provide a refinement of the way information change is measured
and incorporated into food demand models. Hence, these improved methods can
contribute to better-informed policy choices.
A further, if less surprising result, is that the switch from white to red wine is associated with an ageing population. Anecdotally, we know that typically, one matures from sweet whites and soft drinks to full bodied reds and scotch. The results here indicate that ageing dominates health impacts although it is expected that the ageing impacts embody some reaction to health information as well.


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