An econometric model of the West Bank olive subsector was constructed for the period 1968-85, to provide a means of assessing the technical and behavioural forces that regulate the supply of and demand for green olives. A system of demand-and-supply equations was estimated using the two-stage least-squares (2SLS) procedures. Farm prices of green olives were found to be significantly related to quantity and per-head food expenditures. A reduced-form solution to the structural model was derived to test the forecasting ability of the model to predict the endogenous variables when the exogenous variables are given. The model was used to determine the allocation of the West Bank olives which could maximize returns to growers. The model should be both a useful tool for policy makers and of practical value to decision makers in the olive industry.