THE SENSITIVITY OF WINE INDUSTRY OUTCOMES TO MODEL ASSUMPTIONS IN GST SCENARIOS
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This study provides an example of applying an AGE model to consider the
effects on the wine industry of broader tax reform. The sensitivity of results is
considered with respect to the choice of base year for static analysis and an
alteration to the long-run capital assumption. Systematic sensitivity analysis is
used to evaluate the extent to which expenditure and export demand elasticities
determine industry-specific outcomes. The analysis is extended to evaluate the
impacts of policy uncertainty.