TERM (The Enormous Regional Model) is a "bottom-up" CGE model of Australia which treats each region as a separate economy. TERM was created specifically to deal with highly disag-gregated regional data while providing a quick solution to simulations. This makes it a useful tool for examining the...

During the latter part of 2002 large areas of Australia have been affected by severe drought. In this paper, we examine the prospects for the Australian economy between 2001-02 and 2004-05, with particular emphasis on the implications of the drought for regions. Forecasts that take into account...