A new market for an old food: the U.S. demand for olive oil. (10th July 2014)

• Record Type: Journal Article
• Authors: Xiong, Bo; Sumner, Daniel; Matthews, William
• Is Part Of: Agricultural economics. Volume 45:Number 1(2014:Jan.)
• Page Start: 107
• Page End: 118
• Publication Date: 2014-07-10
• Subjects: Agriculture -- Economic aspects -- Periodicals; 338.105
• DOI: 10.1111/agec.12133
• Languages: English
• ISSNs: 0169-5150

Abstract

<abstract abstract-type="main"> <title>Abstract</title> <p>While U.S. consumption of olive oil has tripled over the past two decades, nearly all olive oil continues to be imported. Estimation of a demand system using monthly import data reveals that the income elasticity for virgin oils sourced from EU is above one, but demand for nonvirgin oils is income‐inelastic. The demand for olive oil as a single product is price‐inelastic. Differentiated by product characteristic and origin, olive oils are highly substitutable with each other but not with other vegetable oils. News about the health and culinary benefits of olive oil and the spread of Mediterranean diet contribute significantly to the rising demand.</p> </abstract>