The impact of hail on retail wine sales: Evidence from Switzerland
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 experi- ment 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 inter- preted 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.