Factors Affecting Risk Efficiency: A Data Envelopment Approach

This paper estimated the two-step process of production risk model which allows positive and negative marginal risk of production. In addition, a nonparametric data envelopment based analytical model is developed with a conjunction of production risk model as a purpose of relevant determinants to estimate the risk efficiency of the Transplanted AMAN rice farm. The results indicate that the important variable labor was expected to be risk-reducing, but it was positively related to risk in the farms of Dhaka (DHR), Chittagong (CHR), Khulna (KHR), Barishal (BAR) and Rangpur (RANGR) region.