| The Economics of fertilizer application has been an interesting issue in regard to crop production (Kennedy et al., 1973). Understanding the temporal dynamics complicates the issue along two dimensions: fertilizer carryover and fertilizer runoff. Fertilizer carryover measures the amount of fertilizer applied in the previous period that is available for crops in current growing period (Kennedy et al., 1973). Fertilizer runoff refers to fertilizer leaving the ground and flowing into water bodies. Thus, the optimal quantity of fertilizer to be applied in the current period depends on the amount of previous application, runoff, and carryover. Because fertilizer carryover and runoff makes optimization of application a complicated intertemporal problem, static... |
