Abstract
This paper deals with estimation of primal panel data models of production risk, focusing
on measurement of risk properties of inputs and productivity growth. Under production risk
one should estimate technical change separately for the deterministic part and risk part of the
technology, since risk averse producers will take into account both the mean and variance
of output when they rank alternative technologies. For a panel of Norwegian salmon farms
fish feed and fish input are found to increase output risk, while labor has a risk-decreasing
effect on output. In the analysis of technical change by the first order stochastic dominance
criterion the increase in mean output dominates the increase in output risk.