EconPapers    
Economics at your fingertips  
 

Fair-Value Cost Estimation and Government Cash Flows: Working Paper 2021-05

Michael Falkenheim

No 57062, Working Papers from Congressional Budget Office

Abstract: Under current law, federal agencies estimate the budgetary costs of loans and loan guarantees using the projected yields on Treasury securities to discount future cash flows to the present. That approach recognizes costs when loans originate instead of when cash flows occur, the approach agencies use to account for most other items in the federal budget. Agencies project the future cash flows of loans and loan guarantees as the average of their possible values, weighting different outcomes by their probability. Fair-value budgeting—an alternative to the approach used under

JEL-codes: G00 H50 H81 H83 (search for similar items in EconPapers)
Date: 2021-04-19
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.cbo.gov/system/files/2021-04/57062-Fair-Value-Budgeting.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cbo:wpaper:57062

Access Statistics for this paper

More papers in Working Papers from Congressional Budget Office Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2024-03-04
Handle: RePEc:cbo:wpaper:57062