Authors:

  • N. Gregory Mankiw

Excerpt

A Slippery New Rule for Gauging Fiscal Policy. N. Gregory Mankiw, February 28, 2015, Opinion. "A Slippery New Rule for Gauging Fiscal Policy: the case for dynamic over static scoring is strong in theory. Yet three problems make the task difficult in practice.  First, any attempt to estimate the impact of a policy change on G.D.P. requires an economic model. Because reasonable people can disagree about what model, and what parameters of that model, are best, the results from dynamic scoring will always be controversial... Second, accurate dynamic scoring requires more information than congressional proposals typically provide..." Link