In a bottom-up multi-regional CGE, national results are driven by regional results. Relative to MMRF, TERM is designed to handle more regions and industries with modest memory and fast solution. Aggregation of regions or industries can shrink the model while retaining needed detail.
The first Australian TERM database had 144 industries and 57 regions; later versions reached 182 industries and 205 statistical sub-divisions, so that cities can be split into catchments or tourism zones. Fine geography helps with unemployment and rural–urban gaps, water management, and transport links, and narrows the gap with land-use–transport–energy models.