Econometric‐Process Models for Integrated Assessment of Agricultural Production Systems

Abstract This article develops the conceptual and empirical basis for a class of empirical economic production models that can be linked to site‐specific biophysical models for use in integrated assessment research. Site‐specific data are used to estimate econometric production models, and these data and models are then incorporated into a simulation model that represents the decision‐making process of the farmer as a sequence of discrete and continuous land‐use and input‐use decisions. An econometric‐process model of the dryland grain production system of the Northern Plains demonstrates the capabilities of this type of model to simulate decision making both within and outside the range of observed data.