The Congressional Budget Process, Aggregate Spending, and Statutory Budget Rules

Congressional Budget Office Testimony

Congressional Budget Office

The Congressional Budget Office (CBO) and the staff of the Joint Committee on Taxation (JCT) have completed an estimate of the direct spending and revenue effects of an amendment in the nature of a substitute to H.R. 4872, the Reconciliation Act of 2010. The amendment discussed in this letter (hereafter called “the reconciliation proposal”) is the one that was made public on March 18, 2010, as ...

Optimal Budget Deficit Rules

This paper discusses the problem of the optimal determination of budget deficit limits in cases where the fiscal authority wishes to keep the budget deficit close to a reference value. It is assumed that the fiscal authority minimizes the expected discounted value of squared deviations from the reference value. Lump-sum and proportional intervention costs are considered. This paper is also an e...

Congress of the United States Congressional Budget Office

Congress of the United States Congressional Budget Office

NOTES Unless otherwise indicated, all years referred to in Chapter I are calendar years and all years in Chapter II are fiscal years. "Growth during 1988" or "growth in 1988" means growth from the end of 1987 to the end of 1988 except where otherwise specified. "Growth between 1987 and 1988" means the percentage difference between the annual average levels in 1987 and 1988. Unemployment rates t...