Price dependence in the principal EU olive oil markets

• Main Authors: Christos Emmanouilides, Panos Fousekis, Vasilis Grigoriadis
• Format: Article
• Language: English
• Published: Instituto Nacional de Investigación y Tecnología Agraria y Alimentaria 2013-12-01
• Series: Spanish Journal of Agricultural Research
• Subjects: efficiency; integration; co-movement; copulas
• Online Access: http://revistas.inia.es/index.php/sjar/article/view/4606

<p>The objective of this paper is to assess the degree and the structure of price dependence in the principal EU olive oil markets (Spain, Italy and Greece). To this end, it utilizes monthly olive oil price data and the statistical tool of copulas. The empirical results suggest that prices are likely to boom together but not to crash together; this is especially true for the prices of the two most important players, Italy (importer) and Spain (exporter). The finding of asymmetric price co-movements implies that the three principal spatial olive oil markets in the EU cannot be thought of as one great pool.</p>