The Centre of Policy Studies (CoPS) offers an intensive one-week course introducing participants to the equations and data structure of TERM (a multiregional CGE model of a single country) and providing them with extensive hands-on experience with the GEMPACK software used to solve CGE models.
It will be hosted by the Austrian Institute of Economic Research (WIFO) in Vienna.
Course dates: 19-23 June 2023.
The course should appeal to people needing the following skills and knowledge:
- the ability to work with, or understand results from, a regional CGE model like TERM
- the ability to use the theory of TERM and the TERM database construction methodology for a chosen country
- an understanding of current policy issues in the context of a formal economy-wide system.
The TERM model
TERM (The Enormous Regional Model) is a multiregional CGE model of a single country, which is "bottom-up" – it treats each region as a separate economy. Two key features of TERM are: (a) its ability to solve quickly with a large number of regions or sectors, and (b) its database construction methodology, which allows a multiregional database to be constructed quickly, even with quite limited regional data.
The first, Australian, version of TERM distinguished 144 sectors and 57 regions. More recently, its master database has been extended to represent 216 sectors in 334 statistical area level 3 regions (SA3s), so that urban areas, water catchment areas and tourism regions may all be distinguished accurately. The high degree of regional detail makes TERM a useful tool for examining the regional impacts of shocks (especially supply-side shocks) that may be region-specific. Finally, TERM has a particularly detailed treatment of transport costs and is naturally suited to simulating the effects of improving particular road or rail links.
Versions of TERM have been prepared for Brazil, China, Finland, Indonesia, Italy, Japan, Korea, New Zealand, Poland, South Africa, Sri Lanka, Sweden and USA.
Course outline
The course program consists of lectures explaining CGE theory as applied to TERM integrated with a sequence of practical computer exercises using GEMPACK. The lectures and exercises are worked through using TERM-USA, an implementation of TERM for USA. During the first 3.5 days, about equal time is spent on lectures, and on practical sessions. Then, participants form into groups, each focused on running and analysing different simulations. The group projects will use a version of TERM more suited to European participants. EuroTERM is a multi-regional CGE model of Europe and some neighbouring nations. The master database includes 295 NUTS-2 regions and 74 sectors (the GTAP 65 plus electricity divided into 9 generating sectors and distribution). The aggregation for the group project will include three regions in Austria, plus single regions for Germany, Spain, France, Italy, Rest of Western Europe, Eastern Europe and United Kingdom. The 29 sectors in the group project aggregation will include two agricultural sectors, three mining sectors, two food processing sectors and three types of electricity generation.
Group exercises will examine the impacts of productivity gains in the short-run and long-run. Other scenarios include a depiction of COVID impacts.
The course should appeal to those needing a background in CGE modelling in order to work with, or understand results from a typical multi-regional CGE model, and to those wishing to learn CGE modelling using GEMPACK. Course participants receive a folder containing course notes, lecture slides and model documentation. Furthermore participants receive a USB key containing GEMPACK software, a 1-year expiring licence, the GEMPACK manual and computer files containing the course model and exercise material.
Fees (in Euros)
Fees cover:
- course materials (including GEMPACK software 1-year licence)
- morning and afternoon teas
- 5 lunches.
The fee does not cover accommodation, breakfast or dinner.
Student
- Full fee – €1200
- CEEC, 15% discount – €1020
- 2+ members, or from one institution, 20% discount – €960
Academic
- Full fee – €2400
- CEEC, 15% discount – €2040
- 2+ members, or from one institution, 20% discount – €1920
Government
- Full fee – €3200
- CEEC, 15% discount – €2720
- 2+ members, or from one institution, 20% discount – €2560
Private sector
- Full fee – €4500
- CEEC, 15% discount – €3825
- 2+ members, or from one institution, 20% discount – €3600
