Rational Solutions for a Complex World


State and Local Tax Revenue Estimation

A variety of techniques can be used to estimate the changes in tax receipts 
due to the business cycle or changes in specific tax rates.  PE employs 
econometric modeling and the use of computable general equilibrium 
models (CGE) to achieve this purpose.  These techniques allow public sector 
clients to anticipate increases and decreases  in tax receipts, as well as the 
effect on other important drivers of their local economy such as employment, 
investment and personal income.

Through sophisticated modeling such as this, lawmakers can be prepared for 
changes to their local economies. They can gain insight that will allow them to 
adjust budgets and discretionary spending on programs ahead of the dynamic 
shifts in the economic landscape giving them an advantage.