'Game changing' economic modelling capability

Decision makers in both the government and private sectors are faced with an ever changing landscape, where understanding economic linkages has never been more important.

Economy-wide, computable general equilibrium (CGE) modelling has a long established track record in assisting decision makers to understand these linkages in a robust, detailed and consistent manner.

As data has become more available - particularly industry, regional and spatial data - and computing power has increased, the scope of CGE modelling capabilities has improved considerably. As a result, we would expect to see higher quality economic analysis being undertaken using CGE modelling.

Unfortunately, this is not been the case.

The reason for this is that despite these prerequisite conditions for improved quality analysis, the existing CGE modelling platforms are obsolete, expensive and difficult to use. These platforms are a genuine barrier to better analysis and decision making.

A new approach

To address this, Cadence Economics has developed proprietary software that now allows CGE modelling to be more accessible than ever. The software, called CEGEMS (Cadence Economics General Equilibrium Modelling Software) is based on commercial grade open source software (primarily the popular Python programming language) that is used extensively in academia and the private sector for complex data management tasks.

We have built on this platform our state-of-the-art, in-house CGE modelling capability. We have thoroughly tested and verified the software which is more accurate, faster and provides users with greater functionality than the other software on the market.

Importantly, we have developed an Excel based front end that allows us to tailor the model to each individual application of the model you require.

Simply tell us the issue under consideration, your desired level of regional and sectoral detail, the format of your modelling inputs and output requirements.

From that point, if you can use Excel then you can run our model.

There are a number of advantages to our modelling approach.

Better client service

Cadence Economics undertakes independent economic analysis for a variety of clients. This analysis is undertaken for the purposes of informing or influencing decision making at a range of levels. Our experience tells us that the most effective analysis is that where we can move away from the common criticism of CGE modelling being a 'black box'.

Where our clients can understand what is driving the analysis we have undertaken, can explain our results to their stakeholders, they are better placed to advocate for better decision making.

Our software allows us to open up our modelling, to the point of workshopping our analysis in real time. Rather than receiving charts and tables of results, our clients are able to see the workings of our analysis, and contribute directly to exploring issues under consideration. In that context, we are able to draw on the expertise of our clients, greatly improving the analysis being undertaken.

Better transferability of our modelling capability

Many organisation we speak to have a wealth of expertise, resources and data at their disposal. The addition of a CGE capability is considered highly desirable as a mechanism of bringing together these attributes in a single modelling framework to provide better information and advice to their stakeholders.

However, given the current state of the software, CGE modelling is considered too risky a proposition.

This situation has just changed.

We are now ideally placed to transfer bespoke CGE modelling capability to other research based organisations. Our unique pricing structure means that organisations are not forced to make large, up-front payments for software and staff training that may never result in the quality of analysis they require.

Rather, our pricing structure is based on low up-front costs aligned with service packages that allow organisations to draw on our experience in a cost effective manner to establish a bespoke modelling solution. This allows organisation to cost effectively obtain CGE modelling capability

Better training options

In this context, we have also revolutionised the concept of CGE training. We are able to design training programs that are based on the individual circumstances of the organisation in which our model is being transferred. These bespoke training programs are designed around issues that are of direct and immediate relevance to your organisation.

Our training programs are highly applied, focussing on how to determine model inputs and interpret model outputs. This is in contrast to the typical off-the-shelf programs which focus on esoteric applications and where participants are forced to spend the bulk of their time learning how to wrestle with outdated software.

Better collaboration with other consulting firms

Cadence Economics works collaboratively with a range of service providers, be they other economic consultants or subject matter experts. Our ability to work collaboratively with other consulting firms is drastically improved with this software development.

There are many economic consulting firms without a CGE capability who, through their client relationships, find themselves dealing with issues that are ideally suited to CGE modelling. However, due to either project economics, lack of in-house expertise, issues relating to delivery risk or a combination of these, cannot offer CGE modelling services (sometimes opting for inferior, reputationally damaging techniques).

In our experience, successful collaboration on often complex economic modelling projects is based on the highest levels of communication, transparency and co-operation. Our modelling platform, combined with our collective experience and expertise means we can effectively reduce these barriers to successful collaboration for the benefit of your clients.

Next steps

This is a game changing development in the provision of CGE modelling services in the Australian market. If you are interested in discussing how working with Cadence Economics might work to your advantage, please do not hesitate to contact us and we can arrange a demonstration of our modelling platform.

Contact Us

In person:
Unit 108, 27 Lonsdale St Braddon, ACT 2612

By mail:
PO Box 5127 Braddon, ACT 2612

Tel:
(02) 6174 0244

e-mail:
contact@cadenceeconomics.com.au