Explaining Analytical Methods
CBO describes the commitments the federal government has made through its credit and insurance programs, including housing, real estate, and student loan programs, deposit insurance, insurance for private pensions, and flood and crop insurance.
CBO outlines how it analyzes public-private risk sharing in the federal terrorism insurance, crop insurance, and flood insurance programs. The agency also describes how that risk sharing affects the federal budget.
When analyzing proposals and programs whose costs depend on whether or not some uncertain variable reaches a specified trigger level, CBO considers a range of possible outcomes and their associated probabilities.