Worked example · EX:economics-and-market-foundations/separate-automatic-stabilizers-from-discretionary-fiscal-action

Separate automatic stabilizers from discretionary fiscal action

Distinguish rule based budget response, newly enacted measures, budget accounting, national accounts, incidence, and entity recognition.

Updated Aug 7, 2026 Review due Nov 7, 2026
Worked-example setupScope and assumptions
  • The CBO card is a dated counterfactual analysis of automatic stabilizers, not a current universal multiplier.
  • The hypothetical discretionary grant requires separate enacted-text and entity evidence.
Period
Dated 2024 analysis with a separate fictional legislative scenario
Units
qualitative evidence checkpoints
Rounding
Not applicable

A recession reduces taxable income and increases eligibility under existing rules. That is an automatic response; no new vote is required for the rule to operate. A newly enacted infrastructure purchase, tax credit, or transfer is discretionary action, though later implementation may be delegated.

Keep four ledgers:

  • legal: enactment, delegation, effective date, eligibility, and sunset;
  • budget: receipts, obligations, outlays, baseline, and financing;
  • economic: purchases versus transfers, timing, capacity, behavior, incidence, multipliers, leakage, crowding, and monetary conditions; and
  • entity: contract, entitlement, performance, tax or grant authority, measurement, recognition, disclosure, and cash.

CBO's estimate depends on its baseline and model. A later observed deficit is not the causal effect of automatic stabilizers by inspection. Likewise, an appropriation does not establish that a vendor earned revenue or received cash.

Verified calculation · economics foundations analysis

The curriculum loader recomputed this example before it entered the site build. Expand any structured input to inspect the stated facts.

claim audits
1 field
Inspect data
{
  "fiscal_transmission_claim": {
    "causal_design_supplied": 0,
    "decision_authority_identified": 1,
    "feasible_alternatives_compared": 0,
    "model_assumptions_stated": 1,
    "observation_supplied": 1,
    "value_criterion_stated": 1
  }
}

Recomputed result

Values recomputed by the curriculum loader
MeasureValue
causal claim supported0
descriptive claim supported1
model implication supported1
recommendation supported0