Three Essays on Site Specific Management: a Statistical and Dynamic Programming Approach

Using multivariate analysis, spatial regression, and dynamic programming, this collection of essays investigates the adoption and economic values of Site Specific Management. Site Specific Management (SSM), also known as Variable Rate Technology (VRT), is an emerging technology that enables people to make more precise input application decisions based on soil and field characteristics. SSM not only offers substantial benefits of increased production efficiency, but also improved environmental quality for the society. Like other new technologies, it will require an investment of time and resources to help it mature. In the first essay, factors that may influence the adoption of SSM technology are examined using Multinomial Logit. In the second essay, a spatial regression model is presented to account for the spatial autocorrelation and structural instability in analyzing factors that may influence yield variations within a field. In the third essay, a simulation based on dynamic analysis along with spatial approach is presented that studies the effects of variability and spatial autocorrelation associated with management zone size on the economic values of VRT.