Number: RS22020
Title: Dynamic Revenue Estimating: A Brief Overview
Authors: Jane G. Gravelle, Government and Finance Division 
Abstract: Dynamic revenue estimating taking into account macroeconomic feedback effects from the economy was initiated in the 108th Congress, with the first analysis of the feedback effect provided during consideration of the 2003 tax cut. The effects varied in magnitude and direction, depending on the model used, and have not yet been incorporated into official estimates. To do so would be difficult given the lack of consensus about model and behavioral specifications; at present any analysis is provided to supplement official estimates.
Pages: 3
Date: January 6, 2005