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 separat
ely for the deterministic part and risk part of the technology, since risk
averse producers will take into account both the mean and variance of outpu
t when they rank alternative technologies. For a panel of Norwegian salmon
farms fish feed and fish input are found to increase output risk, while lab
or has a risk-decreasing effect on output. In the analysis of technical cha
nge by the first order stochastic dominance criterion the increase in mean
output dominates the increase in output risk.