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The following article is provided by the Caesar Rodney Institute, a Delaware-based nonprofit 501(c)(3) public policy research organization.

It comes from a Policy Center Director who works to help Delawareans by providing fact-based analysis in four key areas:

education, energy and environmental policy, the economy and government spending, and health policy.

DEFAC Wanders

  • CRI
  • Nov 28, 2018
  • 1 min read

The constraining influence of the Delaware Economic and Financial Advisory Committee (DEFAC) has been a major factor in maintaining the state of Delawares high bond ratings. Recently, however, DEFAC has drifted. Over the past decade the mean absolute percentage error in DEFACs one year ahead forecast of revenues has been 4.1% and the two year ahead error has been 6.7%. This is not stellar but is understandable given all the many factors that impact state revenues. And, DEFAC has typically erred on the low side (conservative forecasts). Unfortunately, going into the current recession, DEFACs forecasts suddenly became overly optimistic.



 
 
 

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About the Caesar Rodney Institute
The Caesar Rodney Institute (CRI) is a Delaware-based, nonprofit 501(c)(3) research organization. As a nonpartisan public policy think tank, CRI provides fact-based analysis in four key areas: education, energy and environmental policy, the economy and government spending, and health policy.

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Our mission is to educate and inform Delawareans-including citizens, legislators, and community leaders-on issues that affect quality of life and opportunity.

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