The TERM Model and Its Database

Abstract

TERM (The Enormous Regional Model) provides a strategy for creating a ‘bottom-up’ multi-regional CGE model which treats each region of a single country as a separate economy. This makes it a useful tool for examining the regional impacts of shocks that may be region specific. TERM is designed to allow quick simulations with many regions, so allowing for models of large countries with 30–50 provinces, such as USA or China. TERM also offers a standard procedure for preparing a database which requires, in addition to a national input-output or use-supply table, a minimal amount of regional data. More regional data can be used if available.