Accounting for risk in productivity analysis: an application to Norwegian dairy farming

Author(s)
Lien, Gudbrand
Kumbhakar, Subal C
Hardaker, John Brian
Publication Date
2017
Abstract
Empirical studies have often shown wide differences in productivity among firms. Although several studies have sought to identify factors causing such differences, only a few studies have examined the effects of risk and risk aversion on productivity. In this study, using Norwegian dairy farming data for 2009, we examined the effects of different aspects of risk on productivity. We used a range of variables to construct indices of risk taking, risk perception and risk management. These indices were then included as arguments in an input distance function which represents the production technology. Our results show that these risk indices did affect productivity. Regional differences in productivity, though small, were also found to exist, suggesting that unobserved edaphic factors that differ between regions also affected productivity.
Citation
Journal of Productivity Analysis, 47(3), p. 247-257
ISSN
1573-0441
0895-562X
Link
Publisher
Springer New York LLC
Title
Accounting for risk in productivity analysis: an application to Norwegian dairy farming
Type of document
Journal Article
Entity Type
Publication

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