This article evaluates the ex ante forecasting performance of the Oklahoma
tax model It is compared with that of the model-free Box-Jenkins methods.
The Oklahoma model outperforms the Box-Jenkins methods in forecastings
of various tax revenues. The model is also simulated to see the tax reforms and
tax revenues both in a short-run and in a long-run. The model concludes that
the effective way to collect the tax revenues for Oklahoma is through a tax
reform on state income tax followed by the corporation income tax, general
sales tax, and motor fuel tax.
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