摘要:The purpose of this investigation is to develop an econometric model of the Prince Edward Island (P.E.!.) tax sector that may be used to forecast the general tax revenues of the province. The model is designed to estimate the impact on certain P.E.!. economic variables as the resuIt of the changes in selected exogenous variables. The specification of a 14-equation tax model and its schematic diagram are presented in the following section. The third section contains the estimation of the structural equations of the model, and in the fourth the reduced form equations of the tax model are presented. The fifth section contains simulation of the model and model validation test statistics. Finally, the impact analysis and projections of tax revenues are presented.