Author: Mark Horridge
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 to 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.
JEL classification: C68, D58, R12, R13.
Keywords: Regional CGE.
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