IDEAS home Printed from https://ideas.repec.org/a/bla/ajarec/v57y2013i1p79-103.html
   My bibliography  Save this article

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

Author

Listed:
  • Graeme J. Doole
  • David J. Pannell

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.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Graeme J. Doole & David J. Pannell, 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 79-103, January.
    • Handle: RePEc:bla:ajarec:v:57:y:2013:i:1:p:79-103
    DOI: 10.1111/ajar.2013.57.issue-1
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/10.1111/ajar.2013.57.issue-1
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1111/ajar.2013.57.issue-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Monjardino, Marta & Revell, Dean & Pannell, David J., 2010. "The potential contribution of forage shrubs to economic returns and environmental management in Australian dryland agricultural systems," Agricultural Systems, Elsevier, vol. 103(4), pages 187-197, May.
    2. Malcolm, Bill, 1990. "Fifty Years of Farm Management in Australia: Survey and Review," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 58(01), pages 1-32, April.
    3. S Robinson, 2008. "Conceptual modelling for simulation Part II: a framework for conceptual modelling," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(3), pages 291-304, March.
    4. David J. Pannell, 1997. "Sensitivity analysis of normative economic models: theoretical framework and practical strategies," Agricultural Economics, International Association of Agricultural Economists, vol. 16(2), pages 139-152, May.
    5. Russell L. Ackoff, 1973. "Science in the Systems Age: Beyond IE, OR, and MS," Operations Research, INFORMS, vol. 21(3), pages 661-671, June.
    6. Doole, Graeme J., 2008. "Optimal management of annual ryegrass ( Lolium rigidum Gaud.) in phase rotations in the Western Australian Wheatbelt," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), pages 1-24.
    7. Graeme J. Doole & David J. Pannell & Clinton K. Revell, 2009. "Economic contribution of French serradella (Ornithopus sativus Brot.) pasture to integrated weed management in Western Australian mixed-farming systems: an application of compressed annealing ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(2), pages 193-212, April.
    8. R. Quentin Grafton & Tom Kompas & Pham Van Ha, 2009. "Cod Today and None Tomorrow: The Economic Value of a Marine Reserve," Land Economics, University of Wisconsin Press, vol. 85(3), pages 454-469.
    9. David J. Pannell, 1996. "Lessons from a Decade of Whole-Farm Modeling in Western Australia," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 18(3), pages 373-383.
    10. Kingwell, R. S., 1994. "Risk attitude and dryland farm management," Agricultural Systems, Elsevier, vol. 45(2), pages 191-202.
    11. Natalie A Jones & Pascal Perez & Thomas G Measham & Gail J Kelly & Patrick D’Aquino & Katherine Daniell & Anne Dray & Nils Ferrand, 2008. "Evaluating Participatory Modeling: Developing a Framework for Cross-case Analysis," Socio-Economics and the Environment in Discussion (SEED) Working Paper Series 2008-11, CSIRO Sustainable Ecosystems.
    12. Pannell, David J. & Malcolm, Bill & Kingwell, Ross S., 2000. "Are we risking too much? Perspectives on risk in farm modelling," Agricultural Economics, Blackwell, vol. 23(1), pages 69-78, June.
    13. McCarl, Bruce A., 1984. "Model Validation: An Overview with some Emphasis on Risk Models," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 52(03), pages 1-21, December.
    14. Landry, Maurice & Malouin, Jean-Louis & Oral, Muhittin, 1983. "Model validation in operations research," European Journal of Operational Research, Elsevier, vol. 14(3), pages 207-220, November.
    15. Mingers, John & Rosenhead, Jonathan, 2004. "Problem structuring methods in action," European Journal of Operational Research, Elsevier, vol. 152(3), pages 530-554, February.
    16. Pannell, David J. & Kingwell, Ross S. & Schilizzi, Steven, 1996. "Debugging Mathematical Programming Models: Principles and Practical Strategies," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 64(01), pages 1-15, April.
    17. Graeme J. Doole, 2008. "Optimal management of annual ryegrass (Lolium rigidum Gaud.) in phase rotations in the Western Australian Wheatbelt ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), pages 339-362, September.
    18. Richard T. Woodward & Yong-Suhk Wui & Wade L. Griffin, 2005. "Living with the Curse of Dimensionality: Closed-Loop Optimization in a Large-Scale Fisheries Simulation Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 48-60.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    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(01), January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nguyen, Nam C. & Wegener, Malcolm K. & Russell, Iean W., 2007. "Decision support systems in Australian agriculture: state of the art and future development," AFBM Journal, Australasian Farm Business Management Network, vol. 4(01-2), pages 1-7.
    2. Alireza Moumivand & Adel Azar & Abbas Toloie Eshlaghy, 2022. "Combined soft system methodology and agent‐based simulation for multi‐methodological modelling," Systems Research and Behavioral Science, Wiley Blackwell, vol. 39(2), pages 200-217, March.
    3. Kandulu, John, 2011. "Assessing the potential for beneficial diversification in rain-fed agricultural enterprises," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100568, Australian Agricultural and Resource Economics Society.
    4. Jackson, T.M. & Hanjra, Munir A. & Khan, S. & Hafeez, M.M., 2011. "Building a climate resilient farm: A risk based approach for understanding water, energy and emissions in irrigated agriculture," Agricultural Systems, Elsevier, vol. 104(9), pages 729-745.
    5. Flaten, O. & Lien, G., 2007. "Stochastic utility-efficient programming of organic dairy farms," European Journal of Operational Research, Elsevier, vol. 181(3), pages 1574-1583, September.
    6. Janssen, Sander & van Ittersum, Martin K., 2007. "Assessing farm innovations and responses to policies: A review of bio-economic farm models," Agricultural Systems, Elsevier, vol. 94(3), pages 622-636, June.
    7. Arnold Reisman & Muhittin Oral, 2005. "Soft Systems Methodology: A Context Within a 50-Year Retrospective of OR/MS," Interfaces, INFORMS, vol. 35(2), pages 164-178, April.
    8. Kröbel, R. & Bolinder, M.A. & Janzen, H.H. & Little, S.M. & Vandenbygaart, A.J. & Kätterer, T., 2016. "Canadian farm-level soil carbon change assessment by merging the greenhouse gas model Holos with the Introductory Carbon Balance Model (ICBM)," Agricultural Systems, Elsevier, vol. 143(C), pages 76-85.
    9. Graeme J. Doole & David J. Pannell, 2009. "Evaluating combined land conservation benefits from perennial pasture: lucerne (Medicago sativa L.) for management of dryland salinity and herbicide resistance in Western Australia ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(2), pages 231-249, April.
    10. Monjardino, Marta & McBeath, T. & Brennan, Lisa E. & Llewellyn, Rick S., 2012. "Are farmers in low-rainfall cropping regions under-fertilizing? An Australian case-study," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 124976, International Association of Agricultural Economists.
    11. Kandulu, John M., 2013. "Quantifying the extent to which enterprise mix diversification can mitigate economic risk in rainfed agriculture," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 21, pages 1-14.
    12. Chudleigh, Fred & Cox, Howard W. & Chapman, Veronica J., 2002. "Modelling profitable and sustainable farming systems in Central Queensland," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 125070, Australian Agricultural and Resource Economics Society.
    13. Alexis Tsoukiàs, 2007. "On the concept of decision aiding process: an operational perspective," Annals of Operations Research, Springer, vol. 154(1), pages 3-27, October.
    14. Jason Madan & Meghan Bruce Kumar & Miriam Taegtmeyer & Edwine Barasa & Swaran Preet Singh, 2020. "SEEP-CI: A Structured Economic Evaluation Process for Complex Health System Interventions," IJERPH, MDPI, vol. 17(18), pages 1-12, September.
    15. Monjardino, Marta & Loi, Angelo & Thomas, Dean T. & Revell, Clinton K. & Flohr, Bonnie M. & Llewellyn, Rick S. & Norman, Hayley C., 2022. "Improved legume pastures increase economic value, resilience and sustainability of crop-livestock systems," Agricultural Systems, Elsevier, vol. 203(C).
    16. Malcolm, Bill, 2004. "Where's the economics? The core discipline of farm management has gone missing!," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(3), pages 1-23.
    17. Schilizzi, Steven G. M. & Boulier, Fabien, 1997. "`Why do farmers do it?' Validating whole-farm models," Agricultural Systems, Elsevier, vol. 54(4), pages 477-499, August.
    18. Marshall, Graham R. & Jones, Randall E. & Wall, Lisa M., 1997. "Tactical Opportunities, Risk Attitude and Choice of Farming Strategy: an Application of the Distribution Method," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(4), pages 1-21.
    19. Bill Malcolm, 2004. "Where's the economics? The core discipline of farm management has gone missing!," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(3), pages 395-417, September.
    20. Finlayson, John & Real, Daniel & Nordblom, Tom & Revell, Clinton & Ewing, Mike & Kingwell, Ross, 2012. "Farm level assessments of a novel drought tolerant forage: Tedera (Bituminaria bituminosa C.H. Stirt var. albomarginata)," Agricultural Systems, Elsevier, vol. 112(C), pages 38-47.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ajarec:v:57:y:2013:i:1:p:79-103. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.