The aim of this paper is to analyze the transmission of extra virgin olive oil price between
the two main levels of the agri-food chain: origin and destination markets, using weekly price
series for 2007-2010. The analysis is performed by studying the long-term and short-term
relationships between the two markets and the asymmetry, based on the multivariate cointegration
technique and the error correction model. The results indicate that there is no
perfect price transmission, with a strong rigidity of prices in both markets and the presence
of delays.
