Model applications

TERM model projects

Agricultural markets & production

• Changes in the availability of agricultural land
• Changes in agriculture productivity due to climate change

Primary factor productivity

• Change in productivity of physical capital (e.g. due to quality improvement in machines and equipment, or changes in regulation of store-opening hours)
• Changes in labour productivity due to improved training
• Changes in productive capacity within an industry in a given region (e.g. plant expansion, plant closure, business interruptions)

Major infrastructure projects

• Investment in a new road or rail link
• A newly-discovered mine
• Hosting a major international sporting event (e.g. the Olympic Games)

Government policy changes

• Changes in government competition policies that may cause firms to operate more efficiently
• Changes in the rate of commodity taxes
• Changes in wage regulation, health and safety regulations, compensating wage differentials due to amenity or transport costs
• Changes in road use charging regimes
• Government targeted health or education programs

Changes in the behaviour of households

• Changes in household confidence or demographic factors affecting their consumption level
• Changes in population caused by demographic changes (e.g. immigration, changes in birth rates and death rates)
• Changes in household tastes toward a commodity in a region, such as a successful marketing campaign convincing households to purchase more tourism services

National Macroeconomic Shocks

• Changes in investors’ confidence or perceived or actual riskiness of a region
• Changes in national employment, due to changes in:
  • international migration
  • hours worked per worker
  • labour force participation
  • the natural rate of unemployment

External shocks

• Appreciation or depreciation of the domestic currency
• Changes in commodity import prices due to:
  • changes in world commodity prices; or
  • changes in export taxes in other countries.
• Changes in export demand for a commodity due to:
  • economic growth in other countries;
  • the discovery of a new market; or
  • a new trade agreement which reduces barriers of trade in other countries.
• A disease outbreak or other natural event (e.g. drought, flood, climate change, agricultural diseases)