Literature on Production Risk

  • Nabaz T. KhayyatEmail author
Part of the Green Energy and Technology book series (GREEN)


A noticeable number of econometric studies on production technology and firm behavior have been conducted since 1970s, where the flexible functional form technique is introduced. These studies have mainly focused on two issues, first, in measuring the producer’s responses to changes in the price of input and output, and second in measuring the productivity growth. The majority of these studies have relied on one of the two assumptions: The assumption of deterministic setting which indicates that for a given level of inputs the output level will be certainly known, or the assumption of homoskedastic production technology which implies that inputs do not affect the variability of the output.


Utility Function Input Factor Relative Risk Aversion Initial Wealth Absolute Risk Aversion 
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Copyright information

© Springer Science+Business Media Dordrecht 2015

Authors and Affiliations

  1. 1.Technology Management, Economics, and Policy Program, College of EngineeringSeoul National UniversitySeoulSouth Korea

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