The Supply Function of Olive Oil: A Case Study of Italy

The aim of this work is to estimate the equation of supply for olive oil in Italy. We use a series of data from 1983 to 2007, from FAOSTAT, EUROSTAT, ISTAT and ISMEA. We also want to understand what variables influence the supply of olive oil, using the program OXMETRICS.For the supply equation we will try to understand if the classical variables used for the analysis of supply affect or not the amount of olive oil on the market, or if other variables are able to explain the choices of production.