Dynamic Analysis and Scoring

Testimony

Dynamic Analysis and Scoring

Testimony before the House Committee on the Budget
September 13, 2006

Abstract

The testimony discusses the usefulness of dynamic analysis and dynamic scoring for the policymaking process. Burman concludes that dynamic scoring is not feasible because of lack of knowledge about how deficits will be offset, uncertainty about key parameters in economic models, and inherent limitations in those models themselves. Dynamic analysis is useful, but it should be applied to spending as well as taxes. The economic analysis of tax and spending provisions should be done on a provision-by-provision basis, not just overall packages.

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