Advanced economic data analysis

Cadence Economics specialises in advanced economic data analysis. From tourism to mining, our team has extensive experience conducting regional economic analysis and forecasting as well as analysing the structure and linkages of individual firms or sectors.

Regional economic analysis

In addition these studies often take a regional focus, by providing the contribution of the sector at a state or regional level. Cadence Economics has a number of models at its disposal to measure Gross Regional Product and employment by region, whether defined as Local Government Areas, or even finer levels of detail where data quality exists. Our modelling capability means we are unconstrained by conventional regional classifications and can tailor our analysis to our client's needs. For example, when combined with our geographic information systems (GIS) capabilities, we are able to customise our regional data to the relevant industry and catchment areas.

The Cadence Economics Regional Economic Value (CEREV) model is a tool that we have developed to estimate the macroeconomic parameters of a particular region. CEREV allows us to determine the size and structure of a particular region, allowing us to undertake a variety of assessments. Recently, we used CEREV to underpin our economic forecasts of the Pilbara to provide transaction support related to the sale of Port Hedland Airport as well as an assessment of the Burdekin region to consider the economic impact of a solar farm.

The Cadence Economics Regional Forecasting Model (CEREFM) allows us to take a longer term view of the regional economic prospects. This modelling approach applies economic growth theory to any particular region under consideration. Key factors determining economic growth including population, employment, investment and productivity are all considered using this framework, with the ability to consider growth over the short, medium and long term.

At a more detailed level, we can also analyse the industry structure of a region using the Cadence Economics Regional Input Output Model (CERIOM). This model allows us to consider the importance of individual sectors such as mining, agriculture or tourism to a region. Importantly, we have developed a technique for estimating regional trade flows, which are critical when considering the structure of regional linkages. The databases derived from CERIOM are also used to underpin our regional CGE modelling capabilities, allowing seamless integration of our suite of modelling capabilities.

Industry structure and linkages

The size of the sector is typically measured using an economic contribution framework, by providing the direct and indirect value added and employment generated by the sector. These measures are consistent with both the ABS's national accounting framework and employment estimates and provide stakeholders with an appreciation of the significance of the sector. These studies are often based on survey data, and are useful where official statistics on an industry are unavailable and are complemented by our tailored input-output models.

In a number of cases, our studies consider the sector dynamics that affect the nature and scope of overall contribution and linkages. The dynamics are often a function of a number of internal factors like international competition, disruption through technology and policy changes as well as a number of external factors like demographics and consumer preference changes.

Cadence Economics recently undertook an economic contribution study related to cruise shipping, specifically estimating what economic activity can be attributed to an individual vessel. In addition, our staff have undertaken studies for as diverse as agricultural chemicals, Australia's gas sector, airports, the direct selling industry, the taxi industry and outdoor media, the mining sector, international higher education and ACT universities, commissioned by key stakeholders in those sectors.