This paper explores the effects of a simple policy change—a 10 percent tax cut—to shed light on the different models CBO uses to examine the macroeconomic effects of policy changes. Most of the models predict that such a simple tax cut will increase GDP and therefore that the revenue loss...

The Higher Education Amendments of 1998 direct CBO and other organizations to participate in a study group which shall evaluate the spread between each of the 30-day and 90-day commercial paper rates, and the 90-day London Interbank Offered Rate (LIBOR) to the 91-day Treasury bill rate. The...

Recent research indicates that there have been fund amental changes in the way the economy works since the mid-1980s, including a reduction in the volatility of real GDP growth and lower rates of inflation and unemployment. Those changes have the potential to alter the inflation-unemployment...