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Analysis of the multifaceted impact of the monetary component in the choice of olive oils Abstract

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Authors: Manuel Arriaza, Melania Salazar‑Ordóñez y Macario Rodríguez‑Entrena
Issue: 118-1 (101-118)
Topic: Agricultural Economics
Keywords: olive oil choice, panel data, extra virgin olive oil, refined olive oil, random parameters logit model

In Spanish households, approximately two‑thirds of the oil consumption correspond to olive oil, especially refined olive oil (ROO) over extra virgin olive oil (EVOO). This paper aims to analyze the factors determining the choice of EVOO, the organoleptic and nutritionally superior quality category, over the ROO beyond their price gap. Based on the consumption of 648 Andalusian households included in a panel data and a random parameters logit model the results suggest that the probability of EVOO choice over ROO decreases as the price gap increases, the consumer opts for store brands and chooses hard discount stores. Conversely, the odds ratio increases in high-income households and those located in olive oil producer provinces. Finally, it is worth noting that almost two-thirds of the consumer choice is due to the unobserved household heterogeneity and the strong inertia of the olive oil consumption, being 80 % higher the probability of no change.


Arriaza M, Salazar‑Ordóñez M, Rodríguez‑Entrena M (2022). Análisis del impacto multifacético de la componente monetaria en la elección de los aceites de oliva. ITEA‑Información Técnica Económica Agraria 118(1): 101-118.

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