DOI: 10.5176/2251-1938_ORS48
Authors: Kanis Fatama Ferdushi, Anton Abdulbasah Kamil, Adli Muatafa and Md Azizul Baten
Abstract:
The major aim of this paper is to estimate Production Risk with inefficiency on a stochastic frontier framework over the time period .This endeavor was carried out on the basis of stochastic production function, noise and inefficiency function. Panel data were taken for this framework from 1980-2008 in the agricultural field of Bangladesh concentrated on seasonal rice crop such like as Aus, Aman, and Boro. The noise with inefficiency had been checked for the total production of Aus, Aman, and Boro . In this study climate variables rainfall, temperature and humidity used in order to find out the impact of climate on the production risk. The results of total production shows that Area, Seed and Fertilizer have positive and significance affect on noise. Those input are increasing risk. Climate variable humidity is increasing risk on production process. Both rainfall and temperatures significantly have negative relationship on noise that means risk decreasing input.
Keywords: Stochastic Production Function; Production Risk; Technical Inefficiency
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