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A process for the development and application of simulation models in applied economics

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  • Doole, Graeme J.
  • Pannell, David J.

Abstract

Simulation models are widely used in applied economics to improve understanding of how a system could behave under different conditions. However, the potential degree to which such models can influence decision making depends on their ability to provide an adequate description of the important elements of a given problem. A systematic and robust procedure for the development and application of such models in agricultural, ecological, environmental and natural resource economics is presented. This process is based on the authors’ experience across a broad range of model types and applications and extensive literature review. The practical impact of simulation models is argued to be greater where stakeholders and technical experts are consulted extensively throughout the modelling process.

Suggested Citation

  • Doole, Graeme J. & Pannell, David J., 2013. "A process for the development and application of simulation models in applied economics," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(1), pages 1-25.
    • Handle: RePEc:ags:aareaj:233840
    DOI: 10.22004/ag.econ.233840
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    1. Doole, Graeme J. & Romera, Alvaro J., 2013. "Detailed description of grazing systems using nonlinear optimisation methods: A model of a pasture-based New Zealand dairy farm," Agricultural Systems, Elsevier, vol. 122(C), pages 33-41.
    2. Doole, Graeme J. & Marsh, Dan K., 2014. "Methodological limitations in the evaluation of policies to reduce nitrate leaching from New Zealand agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(1), January.

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