I have referenced to some papers which extracted DEM and DSM based on LIDAR data. Then HRSI was fused with Lidar data. is this method effective? Are there other effective methods?
You might want to have a look at the Lemonade project. https://www.researchgate.net/project/LandslidE-MOnitoriNg-And-Data-intEgration-LEMONADE
If you are looking for software... here is one that i used to merge LIDAR with both satellite images and aerial photogrammetry. "Quick Terrain Modeler" from Applied Imagery. They have an educational discount if you are associated with a university.
If you are looking for a software, FME has an efficien attribute fusion pipeline. Else, the paper Conference Paper Point clouds as an efficient multiscale layered spatial representation
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