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European Review of Agricultural Economics Advance Access published online on February 13, 2006
European Review of Agricultural Economics, doi:10.1093/erae/jbi036
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© Oxford University Press and Foundation for the European Review of Agricultural Economics 2006; all rights reserved

Article

Production risk and technical inefficiency in Russian agriculture

Raushan Bokusheva 1 * and Heinrich Hockmann 2

1 Institute of Agricultural Development in Central and Eastern Europe (IAMO), Theodor-Lieser-Str. 2, 06120 Halle, Germany
2 Institute of Agricultural Development in Central and Eastern Europe (IAMO), Halle, Germany

* To whom correspondence should be addressed.
Raushan Bokusheva, E-mail: bokusheva{at}iamo.de


  Abstract

This study investigates production risk and technical inefficiency as two possible sources of the production variability that characterised Russian agriculture during the last decade. The empirical analysis is conducted using panel data from 1996 to 2001 on 443 large agricultural enterprises from three regions in central, southern and Volga Russia. A production function specification accounting for the effect of inputs on both risk and technical inefficiency is found to describe production technologies of Russian farms more appropriately than the traditional stochastic frontier formulation.

Keywords: production risk; technical efficiency; panel data; Russian agriculture.
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