Monday, April 24, 2017

Dynamic Scoring

Dynamic scoring is a politician's ultimate fudge factor equation to project a desired fiscal outcome that is, in reality, unknowable because of the number of unknown variables in very complex, ever-changing, equations.

Specifically, dynamic scoring is an attempt to predict the results of fiscal policy changes by examining and forecasting the effects of a multitude of dynamic economic agents' reactions to the policy changes.

By assuming a given agent data point is static rather than dynamic almost any desired conclusion can be reached.

-RW