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An Econometric Analysis of the Olive Oil Market in Italy

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  • Pierani, P
  • Rizzi, P L

Abstract

This paper analyzes the olive oil market in Italy. In the specified model, consumption and import demand form conditional demand systems and the relevant policy variables are endogenous. Empirical evidence based on a three-fat almost ideal demand system shows that olive oil is elastic with respect to the group expenditure; that olive oil, seed oils, and butter behave like net substitutes and as gross complements; and that olive oil conditional demand is rather reactive to its own price. The policy multipliers support answers that are coherent with the assumptions, but contradict common opinions. In particular, sectoral instruments are not that effective in enhancing the market. Copyright 1991 by Oxford University Press.

Suggested Citation

  • Pierani, P & Rizzi, P L, 1991. "An Econometric Analysis of the Olive Oil Market in Italy," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 18(1), pages 37-60.
    • Handle: RePEc:oup:erevae:v:18:y:1991:i:1:p:37-60
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    Cited by:

    1. Galarraga, Ibon & Markandya, Anil, 2004. "Economic techniques to estimate the demand for sustainable products: a case study for fair trade and organic coffee in the United Kingdom," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 4(07), pages 1-26.
    2. Bo Xiong & Daniel Sumner & William Matthews, 2014. "A new market for an old food: the U.S. demand for olive oil," Agricultural Economics, International Association of Agricultural Economists, vol. 45(S1), pages 107-118, November.
    3. Schneider, Kevin & Mourits, Monique & van der Werf, Wopke & Lansink, Alfons Oude, 2021. "On consumer impact from Xylella fastidiosa subspecies pauca," Ecological Economics, Elsevier, vol. 185(C).
    4. Bouamra-Mechemache, Zohra & Réquillart, Vincent & Soregaroli, Claudio & Trévisiol, Audrey, 2008. "Demand for dairy products in the EU," Food Policy, Elsevier, vol. 33(6), pages 644-656, December.
    5. Janda, Karel & Rausser, Gordon C. & McCluskey, Jill, 1998. "Food import demand in the Czech Republic," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt14j5p75j, Department of Agricultural & Resource Economics, UC Berkeley.
    6. J. A. Molina, 1994. "Food Demand In Spain: An Application Of The Almost Ideal System," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(2), pages 252-258, May.
    7. Karel Janda & Jill J. McCluskey & Gordon C. Rausser, 2000. "Food Import Demand in the Czech Republic," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(1), pages 22-44, January.
    8. Antonio Stasi & Francesco Diotallevi & Andrea Marchini & Gianluca Nardone, 2018. "Italian Extra-Virgin Olive Oil: Impact on Demand on Being Market Leaders, Private Labels or Small Producers," Review of Economics & Finance, Better Advances Press, Canada, vol. 13, pages 39-54, August.

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