CBO estimates how expanding certain children’s eligibility for Medicaid or the Children’s Health Insurance Program over the next 10 years would affect the U.S. economy and the federal budget through the end of the century.
Explaining Analytical Methods
ReportThe 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.
Working PaperCBO uses the budgetary feedback model (BFM) to estimate how changes in the macroeconomy might affect the federal budget. This paper describes how the BFM is constructed, how it is used in CBO's dynamic analyses, and the model's limitations.