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.)

  • Blog Post
    Short-Term Spending and Long-Term Dynamic Effects

    Some federal policies involve short-term expenditures that result in economic and budgetary effects far in the future. CBO has been building analytic capacity to consider a dynamic framework for policies that would have long-term effects.

  • Report
    CBO Describes Its Cost-Estimating Process

    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.

  • United States Capitol Building in Washington, DC
    Report
    Effects of Physical Infrastructure Spending on the Economy and the Budget Under Two Illustrative Scenarios

    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
    How Changes in Economic Conditions Might Affect the Federal Budget

    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
    Dynamic Analysis at CBO

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

  • United States Capitol Building in Washington, DC
    Blog Post
    Answers to Questions About Dynamic Analysis

    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.