Optimal Budget Generator: Evidence-Based Budget Allocation Framework

20-40% of public spending is misallocated relative to outcome-maximizing benchmarks. This represents $8-16 trillion annually in potential welfare gains. Budget processes respond to lobbying intensity and historical precedent rather than comparative effectiveness evidence. The Optimal Budget Generator combines two evidence sources for each spending category. Diminishing returns modeling: where does spending hit saturation? Cost-effectiveness analysis: what's the marginal impact per dollar? Where methods agree, confidence is high. Where they diverge, uncertainty is quantified. Each category gets an optimal spending level with a Budget Impact Score (study quality × statistical precision × temporal recency) measuring confidence. Output: gap analysis showing which categories are over- or underfunded relative to evidence-based benchmarks.

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Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2026-02-04
DOI
https://doi.org/10.5281/zenodo.18356210
Primary Topic
Fiscal Policies and Political Economy
Type
article
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article

Optimal Budget Generator: Evidence-Based Budget Allocation Framework

Mike P. Sinn
Zenodo (CERN European Organization for Nuclear Research)
Fiscal Policies and Political Economy
article

Optimal Budget Generator: Evidence-Based Budget Allocation Framework

Mike P. Sinn
article en

Abstract

20-40% of public spending is misallocated relative to outcome-maximizing benchmarks. This represents $8-16 trillion annually in potential welfare gains. Budget processes respond to lobbying intensity and historical precedent rather than comparative effectiveness evidence. The Optimal Budget Generator combines two evidence sources for each spending category. Diminishing returns modeling: where does spending hit saturation? Cost-effectiveness analysis: what's the marginal impact per dollar? Where methods agree, confidence is high. Where they diverge, uncertainty is quantified. Each category gets an optimal spending level with a Budget Impact Score (study quality × statistical precision × temporal recency) measuring confidence. Output: gap analysis showing which categories are over- or underfunded relative to evidence-based benchmarks.

Zenodo (CERN European Organization for Nuclear Research)
Accelerated Medical Diagnostics (United States) (US)
Openalex Percentile: Top 70%
Fiscal Policies and Political Economy
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