There have been many previous studies about technical efficiency in wheat production in different areas in Iran, but attention was paid to impact of input utilization on production Risk and none has focused on impact of technological change on production risk. Thus in this study we tried to determine whether technology has a positive or negative effect on production variation. To achieve this aim, a stochastic frontier production function with a heteroske-dastic error structure has been used. A 10-year panel dataset from 8 province (Azarbayjan-e-sharghi, azarbayjan-e-gharbi, Ardebil, Kurdestan, Kermanshah, Lorestan, Zanjan, Eilam) in northwest of Iran was used to estimate different functional specifications. The results indicated that Potash fertilizer and technological change have positive and significant impact on wheat production risk; as well land and labour have a positive effect on wheat production risk but these coefficients are not statically significant. Plus, using phosphate and nitrogen fertilizer and seed have negative and significant impact on wheat production risk.

Keywords