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Abstract

In this paper the construction and application of ORANI-WINE is described. This is a special-purpose version of ORANI specifically designed for analysing policy questions bearing upon the alcoholic beverages sector of the Australian economy and on associated agricultural activities, especially viticulture. Details of the modifications made to ORANI are provided, and projections from ORANI-WINE of the effects of the imposition of a specific tax on domestically produced wine, equivalent to that on beer and malt in the base period, are reported. The approximately 58 per cent increase in the purchasers' price of wine induces a 16 per cent reduction in wine output, a two per cent increase in spirit production, but little effect on beer and malt output. Grape industry output is reduced nine per cent. The projections also emphasise mild inflationary effects on the economy, which impinge most severely on the export sectors (agriculture and mining). Rural employment falls two per cent.

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