Optimal Budget Generator: Evidence-Based Budget Allocation Framework
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.
Fields of Study & Subjects
Fiscal Policy and Economic Growth
Economic and Fiscal Studies
Global Health Care Issues
Publication details
- Journal / source
- OSF Preprints (OSF Preprints)
- Publication date
- 4 February 2026
- Language
- EN
- Document type
- Preprint