Dynamic Analysis

CBO has devoted significant effort to developing analytical tools that enable it to assess how changes in fiscal policies would affect the economy and how such "macroeconomic feedback" would affect the federal budget. Using those tools, the agency has provided estimates of effects on the budget in various reports. To learn more about when CBO conducts such dynamic analysis, see an FAQ on this subject. (See Economic Effects of Fiscal Policy for additional analyses focused primarily on economic outcomes.)

  • Report

    The Congressional Budget Act of 1974 requires CBO to prepare estimates of the cost of legislation at certain points in the legislative process. This document provides answers to questions about how CBO prepares those cost estimates.

  • Report

    CBO examined two illustrative scenarios that would boost federal funding for a mix of types of physical infrastructure by $500 billion over 10 years. The two scenarios differ in how the additional spending would be financed.

  • Report

    CBO has developed “rules of thumb” that show how changes in four key economic variables might affect revenues, outlays, and deficits. An interactive workbook allows users to see the budgetary effects of their own alternative scenarios.

  • Presentation

    Presentation by Wendy Edelberg, an Associate Director for Economic Analysis at CBO, at the University of Chicago Booth School of Business

  • Blog Post

    The Congress adopted a concurrent resolution on the FY16 budget that requires CBO, to the greatest extent practicable, to include macroeconomic effects in its 10-year cost estimates of major legislation approved by Congressional committees.