Methodology, Parameters, and Calculations
health economics methodology, clinical trial cost analysis, medical research ROI, cost-benefit analysis healthcare, sensitivity analysis, Monte Carlo simulation, DALY calculation, pragmatic clinical trials
Overview
This appendix documents all 32 parameters used in the analysis, organized by type:
- External sources (peer-reviewed): 16
- Calculated values: 14
- Core definitions: 2
Calculated Values
Parameters derived from mathematical formulas and economic models.
Annual Funding from 1% of Global Military Spending Redirected to DIH: $27.2B
Annual funding from 1% of global military spending redirected to DIH
Inputs:
- Global Military Spending in 2024 π: $2.72T
- 1% Reduction in Military Spending/War Costs from Treaty: 1%
\[ \begin{gathered} Funding_{treaty} \\ = Spending_{mil} \times Reduce_{treaty} \\ = \$2.72T \times 1\% \\ = \$27.2B \end{gathered} \]
β High confidence
US Discretionary Efficiency: 40.5%
US federal discretionary spending efficiency. What fraction of discretionary spending avoids direct waste (Cat 1 only: military overspend, corporate welfare, drug war, fossil/ag subsidies). ~41%. Some Cat 1 items (farm subsidies, tax expenditures) are technically mandatory/off-budget but are fungible policy choices.
Inputs:
- Category 1: Direct Spending Waste π’: $1.01T
- US Federal Discretionary Spending (FY2024) π: $1.70T
\[ \begin{gathered} E_{US,disc} \\ = 1 - \frac{W_{cat1}}{Spending_{fed}} \\ = 1 - \frac{\$1.01T}{\$1.7T} \\ = 40.5\% \\[0.5em] \text{where } W_{cat1} \\ = W_{military} + W_{corporate} + W_{drugs} \\ + W_{fossil} + W_{agriculture} \\ = \$615B + \$181B + \$90B + \$50B + \$75B \\ = \$1.01T \end{gathered} \]
~ Medium confidence
Sensitivity Analysis
Sensitivity Indices for US Discretionary Efficiency
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| US Gov Waste Category 1 Direct Spending | -1.0000 | Strong driver |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near Β±1 indicate strong influence; values exceeding Β±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: US Discretionary Efficiency
| Statistic | Value |
|---|---|
| Baseline (deterministic) | 40.5% |
| Mean (expected value) | 40.5% |
| Median (50th percentile) | 41.3% |
| Standard Deviation | 8.61% |
| 90% Range (5th-95th percentile) | [23.8%, 53.5%] |
The histogram shows the distribution of US Discretionary Efficiency across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that US Discretionary Efficiency will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
US Governance Efficiency (GDP): 83%
Total US governance efficiency: all 4 waste categories as share of GDP. 1 - ($4.9T / $28.78T) = ~83%. This broader metric captures direct spending waste, compliance burden, policy-induced GDP loss, and system inefficiency relative to total economic output.
Inputs:
- US Government Waste (Total) π’: $4.90T
- US GDP (2024) π: $28.8T
\[ \begin{gathered} E_{US,GDP} = 1 - \frac{W_{total,US}}{USGDP} = 1 - \frac{\$4.9T}{\$28.8T} = 83\% \\[0.5em] \text{where } W_{total,US} = W_{raw,US} \times US = \$4.9T \times 1 = \$4.9T \\[0.5em] \text{where } W_{raw,US} \\ = W_{health} + W_{housing} + W_{military} \\ + W_{regulatory} + W_{tax} + W_{corporate} \\ + W_{tariffs} + W_{drugs} + W_{fossil} \\ + W_{agriculture} \\ = \$1.2T + \$1.4T + \$615B + \$580B + \$546B \\ + \$181B + \$160B + \$90B + \$50B + \$75B \\ = \$4.9T \end{gathered} \]
~ Medium confidence
Sensitivity Analysis
Sensitivity Indices for US Governance Efficiency (GDP)
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| US Gov Waste Total | -1.0000 | Strong driver |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near Β±1 indicate strong influence; values exceeding Β±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: US Governance Efficiency (GDP)
| Statistic | Value |
|---|---|
| Baseline (deterministic) | 83% |
| Mean (expected value) | 83% |
| Median (50th percentile) | 83.3% |
| Standard Deviation | 2.91% |
| 90% Range (5th-95th percentile) | [77.4%, 87.4%] |
The histogram shows the distribution of US Governance Efficiency (GDP) across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that US Governance Efficiency (GDP) will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
Category 1: Direct Spending Waste: $1.01T
Category 1: Direct Federal Spending Waste. Actual federal budget allocations that could be redirected. Includes military overspend ($615B), corporate welfare ($181B), drug war ($90B), fossil fuel subsidies ($50B), and agricultural subsidies ($75B). Total: ~$1.01T annually. Solution: Budget reallocation.
Inputs:
- Military Overspend π: $615B (95% CI: $500B - $750B)
- Corporate Welfare Waste π: $181B (95% CI: $150B - $220B)
- Drug War Cost π: $90B (95% CI: $60B - $150B)
- Fossil Fuel Subsidies (Explicit) π: $50B (95% CI: $30B - $80B)
- Agricultural Subsidies Deadweight Loss π: $75B (95% CI: $50B - $120B)
\[ \begin{gathered} W_{cat1} \\ = W_{military} + W_{corporate} + W_{drugs} + W_{fossil} \\ + W_{agriculture} \\ = \$615B + \$181B + \$90B + \$50B + \$75B \\ = \$1.01T \end{gathered} \]
~ Medium confidence
Sensitivity Analysis
Sensitivity Indices for Category 1: Direct Spending Waste
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| US Gov Waste Military Overspend | 0.4685 | Moderate driver |
| US Gov Waste Drug War | 0.1752 | Weak driver |
| US Gov Waste Agricultural Subsidies | 0.1424 | Weak driver |
| US Gov Waste Corporate Welfare | 0.1265 | Weak driver |
| US Gov Waste Fossil Fuel Subsidies | 0.0922 | Minimal effect |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near Β±1 indicate strong influence; values exceeding Β±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: Category 1: Direct Spending Waste
| Statistic | Value |
|---|---|
| Baseline (deterministic) | $1.01T |
| Mean (expected value) | $1.01T |
| Median (50th percentile) | $998B |
| Standard Deviation | $146B |
| 90% Range (5th-95th percentile) | [$790B, $1.30T] |
The histogram shows the distribution of Category 1: Direct Spending Waste across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that Category 1: Direct Spending Waste will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
Category 2: Compliance Burden: $1.13T
Category 2: Compliance Burden on Private Sector. Private sector resources consumed by government-imposed compliance requirements. Includes tax compliance ($546B) and regulatory red tape ($580B). Total: ~$1.13T annually. Solution: Simplification (tax code reform, regulatory streamlining).
Inputs:
- Tax Compliance Waste π: $546B (95% CI: $450B - $650B)
- Regulatory Red Tape Waste π: $580B (95% CI: $290B - $1T)
\[ \begin{gathered} W_{cat2} \\ = W_{tax} + W_{regulatory} \\ = \$546B + \$580B \\ = \$1.13T \end{gathered} \]
~ Medium confidence
Sensitivity Analysis
Sensitivity Indices for Category 2: Compliance Burden
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| US Gov Waste Regulatory Red Tape | 0.7928 | Strong driver |
| US Gov Waste Tax Compliance | 0.2095 | Weak driver |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near Β±1 indicate strong influence; values exceeding Β±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: Category 2: Compliance Burden
| Statistic | Value |
|---|---|
| Baseline (deterministic) | $1.13T |
| Mean (expected value) | $1.12T |
| Median (50th percentile) | $1.09T |
| Standard Deviation | $230B |
| 90% Range (5th-95th percentile) | [$775B, $1.58T] |
The histogram shows the distribution of Category 2: Compliance Burden across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that Category 2: Compliance Burden will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
Category 3: GDP Loss: $1.56T
Category 3: Policy-Induced GDP Loss. Economic output foregone due to policy constraints on markets. Includes housing/zoning restrictions ($1.4T) and tariffs ($160B). Total: ~$1.56T annually. Solution: Policy reform (zoning liberalization, trade policy).
Inputs:
- Housing/Zoning Restrictions Cost π: $1.40T (95% CI: $500B - $2T)
- Tariff Cost (GDP Loss) π: $160B (95% CI: $90B - $250B)
\[ \begin{gathered} W_{cat3} \\ = W_{housing} + W_{tariffs} \\ = \$1.4T + \$160B \\ = \$1.56T \end{gathered} \]
~ Medium confidence
Sensitivity Analysis
Sensitivity Indices for Category 3: GDP Loss
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| US Gov Waste Housing Zoning | 0.8636 | Strong driver |
| US Gov Waste Tariffs | 0.1372 | Weak driver |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near Β±1 indicate strong influence; values exceeding Β±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: Category 3: GDP Loss
| Statistic | Value |
|---|---|
| Baseline (deterministic) | $1.56T |
| Mean (expected value) | $1.55T |
| Median (50th percentile) | $1.52T |
| Standard Deviation | $327B |
| 90% Range (5th-95th percentile) | [$1.05T, $2.18T] |
The histogram shows the distribution of Category 3: GDP Loss across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that Category 3: GDP Loss will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
Category 4: System Inefficiency: $1.20T
Category 4: Total System Inefficiency. Fundamental system design failures requiring structural redesign. Currently only healthcare system inefficiency ($1.2T). Solution: System redesign using competitive market models (Singaporeβs catastrophic coverage + HSAs, Switzerlandβs regulated competition).
Inputs:
- Healthcare System Inefficiency π: $1.20T (95% CI: $1T - $1.50T)
\[ W_{cat4} = W_{health} = \$1.2T = \$1.2T \]
β High confidence
Sensitivity Analysis
Sensitivity Indices for Category 4: System Inefficiency
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| US Gov Waste Healthcare Inefficiency | 1.0000 | Strong driver |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near Β±1 indicate strong influence; values exceeding Β±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: Category 4: System Inefficiency
| Statistic | Value |
|---|---|
| Baseline (deterministic) | $1.20T |
| Mean (expected value) | $1.20T |
| Median (50th percentile) | $1.20T |
| Standard Deviation | $135B |
| 90% Range (5th-95th percentile) | [$1T, $1.45T] |
The histogram shows the distribution of Category 4: System Inefficiency across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that Category 4: System Inefficiency will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
US Waste (% GDP): 17%
US government waste as percentage of GDP. ~$4.90T waste / $28.78T GDP = ~17%. This represents the βdysfunction taxβ that American citizens effectively pay through inefficient governance.
Inputs:
- US Government Waste (Total) π’: $4.90T
- US GDP (2024) π: $28.8T
\[ \begin{gathered} W_{US,\%GDP} = \frac{W_{total,US}}{USGDP} = \frac{\$4.9T}{\$28.8T} = 17\% \\[0.5em] \text{where } W_{total,US} = W_{raw,US} \times US = \$4.9T \times 1 = \$4.9T \\[0.5em] \text{where } W_{raw,US} \\ = W_{health} + W_{housing} + W_{military} \\ + W_{regulatory} + W_{tax} + W_{corporate} \\ + W_{tariffs} + W_{drugs} + W_{fossil} \\ + W_{agriculture} \\ = \$1.2T + \$1.4T + \$615B + \$580B + \$546B \\ + \$181B + \$160B + \$90B + \$50B + \$75B \\ = \$4.9T \end{gathered} \]
~ Medium confidence
Sensitivity Analysis
Sensitivity Indices for US Waste (% GDP)
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| US Gov Waste Total | 1.0000 | Strong driver |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near Β±1 indicate strong influence; values exceeding Β±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: US Waste (% GDP)
| Statistic | Value |
|---|---|
| Baseline (deterministic) | 17% |
| Mean (expected value) | 17% |
| Median (50th percentile) | 16.7% |
| Standard Deviation | 2.91% |
| 90% Range (5th-95th percentile) | [12.6%, 22.6%] |
The histogram shows the distribution of US Waste (% GDP) across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that US Waste (% GDP) will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
US Waste (QALY Equivalents): 49.0 million QALYs
US government waste expressed as QALY equivalents. This is an economic equivalent, NOT epidemiological health outcomes. Dividing by QALY threshold yields a measure of foregone welfare.
Inputs:
- US Government Waste (Total) π’: $4.90T
- Medical QALY Threshold π: $100K
\[ \begin{gathered} W_{US,QALY} = \frac{W_{total,US}}{QALY_{threshold}} = \frac{\$4.9T}{\$100K} = 49M \\[0.5em] \text{where } W_{total,US} = W_{raw,US} \times US = \$4.9T \times 1 = \$4.9T \\[0.5em] \text{where } W_{raw,US} \\ = W_{health} + W_{housing} + W_{military} \\ + W_{regulatory} + W_{tax} + W_{corporate} \\ + W_{tariffs} + W_{drugs} + W_{fossil} \\ + W_{agriculture} \\ = \$1.2T + \$1.4T + \$615B + \$580B + \$546B \\ + \$181B + \$160B + \$90B + \$50B + \$75B \\ = \$4.9T \end{gathered} \]
~ Medium confidence
Sensitivity Analysis
Sensitivity Indices for US Waste (QALY Equivalents)
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| US Gov Waste Total | 1.0000 | Strong driver |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near Β±1 indicate strong influence; values exceeding Β±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: US Waste (QALY Equivalents)
| Statistic | Value |
|---|---|
| Baseline (deterministic) | 49.0 million |
| Mean (expected value) | 48.9 million |
| Median (50th percentile) | 48.1 million |
| Standard Deviation | 8.38 million |
| 90% Range (5th-95th percentile) | [36.2 million, 65.0 million] |
The histogram shows the distribution of US Waste (QALY Equivalents) across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that US Waste (QALY Equivalents) will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
US Gov Waste (Raw Total): $4.90T
Raw sum of US government waste components before overlap discount: healthcare ($1.2T) + housing ($1.4T) + military ($615B) + regulatory ($580B) + tax ($546B) + corporate ($181B) + tariffs ($160B) + drug war ($90B) + fossil fuel ($50B) + agriculture ($75B) = ~$4.9T raw.
Inputs:
- Healthcare System Inefficiency π: $1.20T (95% CI: $1T - $1.50T)
- Housing/Zoning Restrictions Cost π: $1.40T (95% CI: $500B - $2T)
- Military Overspend π: $615B (95% CI: $500B - $750B)
- Regulatory Red Tape Waste π: $580B (95% CI: $290B - $1T)
- Tax Compliance Waste π: $546B (95% CI: $450B - $650B)
- Corporate Welfare Waste π: $181B (95% CI: $150B - $220B)
- Tariff Cost (GDP Loss) π: $160B (95% CI: $90B - $250B)
- Drug War Cost π: $90B (95% CI: $60B - $150B)
- Fossil Fuel Subsidies (Explicit) π: $50B (95% CI: $30B - $80B)
- Agricultural Subsidies Deadweight Loss π: $75B (95% CI: $50B - $120B)
\[ \begin{gathered} W_{raw,US} \\ = W_{health} + W_{housing} + W_{military} + W_{regulatory} \\ + W_{tax} + W_{corporate} + W_{tariffs} + W_{drugs} \\ + W_{fossil} + W_{agriculture} \\ = \$1.2T + \$1.4T + \$615B + \$580B + \$546B + \$181B + \$160B \\ + \$90B + \$50B + \$75B \\ = \$4.9T \end{gathered} \]
~ Medium confidence
Sensitivity Analysis
Sensitivity Indices for US Gov Waste (Raw Total)
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| US Gov Waste Housing Zoning | 0.3376 | Moderate driver |
| US Gov Waste Regulatory Red Tape | 0.2172 | Weak driver |
| US Gov Waste Healthcare Inefficiency | 0.1614 | Weak driver |
| US Gov Waste Military Overspend | 0.0819 | Minimal effect |
| US Gov Waste Tax Compliance | 0.0574 | Minimal effect |
| US Gov Waste Tariffs | 0.0536 | Minimal effect |
| US Gov Waste Drug War | 0.0306 | Minimal effect |
| US Gov Waste Agricultural Subsidies | 0.0249 | Minimal effect |
| US Gov Waste Corporate Welfare | 0.0221 | Minimal effect |
| US Gov Waste Fossil Fuel Subsidies | 0.0161 | Minimal effect |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near Β±1 indicate strong influence; values exceeding Β±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: US Gov Waste (Raw Total)
| Statistic | Value |
|---|---|
| Baseline (deterministic) | $4.90T |
| Mean (expected value) | $4.89T |
| Median (50th percentile) | $4.81T |
| Standard Deviation | $838B |
| 90% Range (5th-95th percentile) | [$3.62T, $6.50T] |
The histogram shows the distribution of US Gov Waste (Raw Total) across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that US Gov Waste (Raw Total) will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
Recoverable Capital: $2.45T
Recoverable capital if US improved to OECD median efficiency. Current US efficiency ~38-48%; OECD median ~75-85%. Closing to ~80% would recover approximately half the gap.
Inputs:
- US Government Waste (Total) π’: $4.90T
\[ \begin{gathered} W_{US,recoverable} \\ = W_{total,US} \times 0.5 \\ = \$4.9T \times 0.5 \\ = \$2.45T \\[0.5em] \text{where } W_{total,US} = W_{raw,US} \times US = \$4.9T \times 1 = \$4.9T \\[0.5em] \text{where } W_{raw,US} \\ = W_{health} + W_{housing} + W_{military} \\ + W_{regulatory} + W_{tax} + W_{corporate} \\ + W_{tariffs} + W_{drugs} + W_{fossil} \\ + W_{agriculture} \\ = \$1.2T + \$1.4T + \$615B + \$580B + \$546B \\ + \$181B + \$160B + \$90B + \$50B + \$75B \\ = \$4.9T \end{gathered} \]
? Low confidence
Sensitivity Analysis
Sensitivity Indices for Recoverable Capital
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| US Gov Waste Total | 1.0000 | Strong driver |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near Β±1 indicate strong influence; values exceeding Β±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: Recoverable Capital
| Statistic | Value |
|---|---|
| Baseline (deterministic) | $2.45T |
| Mean (expected value) | $2.44T |
| Median (50th percentile) | $2.41T |
| Standard Deviation | $419B |
| 90% Range (5th-95th percentile) | [$1.81T, $3.25T] |
The histogram shows the distribution of Recoverable Capital across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that Recoverable Capital will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
US Government Waste (Total): $4.90T
Total annual US government waste (additive sum of components). Consolidates healthcare ($1.2T), housing ($1.4T), military ($615B), regulatory ($580B), tax ($546B), corporate ($181B), tariffs ($160B), drug war ($90B), fossil fuel ($50B), agriculture ($75B). Categories treated as additive; any overlap offset by excluded categories (state/local inefficiency, implicit subsidies, behavioral effects). ~$4.9T annually.
Inputs:
- US Gov Waste (Raw Total) π’: $4.90T
- Overlap Discount Factor: 1:1
\[ \begin{gathered} W_{total,US} = W_{raw,US} \times US = \$4.9T \times 1 = \$4.9T \\[0.5em] \text{where } W_{raw,US} \\ = W_{health} + W_{housing} + W_{military} \\ + W_{regulatory} + W_{tax} + W_{corporate} \\ + W_{tariffs} + W_{drugs} + W_{fossil} \\ + W_{agriculture} \\ = \$1.2T + \$1.4T + \$615B + \$580B + \$546B \\ + \$181B + \$160B + \$90B + \$50B + \$75B \\ = \$4.9T \end{gathered} \]
~ Medium confidence
Sensitivity Analysis
Sensitivity Indices for US Government Waste (Total)
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| US Gov Waste Raw Total | 1.0000 | Strong driver |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near Β±1 indicate strong influence; values exceeding Β±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: US Government Waste (Total)
| Statistic | Value |
|---|---|
| Baseline (deterministic) | $4.90T |
| Mean (expected value) | $4.89T |
| Median (50th percentile) | $4.81T |
| Standard Deviation | $838B |
| 90% Range (5th-95th percentile) | [$3.62T, $6.50T] |
The histogram shows the distribution of US Government Waste (Total) across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that US Government Waste (Total) will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
US Waste (VSL Equivalents): 357 thousand people
US government waste expressed as VSL equivalents. This is an economic equivalent, NOT literal deaths. Dividing the efficiency gap by VSL yields a measure of foregone welfare.
Inputs:
- US Government Waste (Total) π’: $4.90T
- DOT VSL π: $13.7M
\[ \begin{gathered} W_{US,VSL} = \frac{W_{total,US}}{VSL_{DOT}} = \frac{\$4.9T}{\$13.7M} = 357{,}000 \\[0.5em] \text{where } W_{total,US} = W_{raw,US} \times US = \$4.9T \times 1 = \$4.9T \\[0.5em] \text{where } W_{raw,US} \\ = W_{health} + W_{housing} + W_{military} \\ + W_{regulatory} + W_{tax} + W_{corporate} \\ + W_{tariffs} + W_{drugs} + W_{fossil} \\ + W_{agriculture} \\ = \$1.2T + \$1.4T + \$615B + \$580B + \$546B \\ + \$181B + \$160B + \$90B + \$50B + \$75B \\ = \$4.9T \end{gathered} \]
~ Medium confidence
Sensitivity Analysis
Sensitivity Indices for US Waste (VSL Equivalents)
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| US Gov Waste Total | 1.0000 | Strong driver |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near Β±1 indicate strong influence; values exceeding Β±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: US Waste (VSL Equivalents)
| Statistic | Value |
|---|---|
| Baseline (deterministic) | 357 thousand |
| Mean (expected value) | 357 thousand |
| Median (50th percentile) | 351 thousand |
| Standard Deviation | 61.1 thousand |
| 90% Range (5th-95th percentile) | [264 thousand, 475 thousand] |
The histogram shows the distribution of US Waste (VSL Equivalents) across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that US Waste (VSL Equivalents) will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
Efficiency Gap / Treaty Funding: 180:1
How many times the US government efficiency gap could fund the 1% Treaty. The efficiency gap represents capital that could fund transformative health research many times over.
Inputs:
- US Government Waste (Total) π’: $4.90T
- Annual Funding from 1% of Global Military Spending Redirected to DIH π’: $27.2B
\[ \begin{gathered} k_{waste:treaty} = \frac{W_{total,US}}{Funding_{treaty}} = \frac{\$4.9T}{\$27.2B} = 180 \\[0.5em] \text{where } W_{total,US} = W_{raw,US} \times US = \$4.9T \times 1 = \$4.9T \\[0.5em] \text{where } W_{raw,US} \\ = W_{health} + W_{housing} + W_{military} \\ + W_{regulatory} + W_{tax} + W_{corporate} \\ + W_{tariffs} + W_{drugs} + W_{fossil} \\ + W_{agriculture} \\ = \$1.2T + \$1.4T + \$615B + \$580B + \$546B \\ + \$181B + \$160B + \$90B + \$50B + \$75B \\ = \$4.9T \\[0.5em] \text{where } Funding_{treaty} \\ = Spending_{mil} \times Reduce_{treaty} \\ = \$2.72T \times 1\% \\ = \$27.2B \end{gathered} \]
~ Medium confidence
Sensitivity Analysis
Sensitivity Indices for Efficiency Gap / Treaty Funding
Regression-based sensitivity showing which inputs explain the most variance in the output.
| Input Parameter | Sensitivity Coefficient | Interpretation |
|---|---|---|
| US Gov Waste Total | 1.0000 | Strong driver |
Interpretation: Standardized coefficients show the change in output (in SD units) per 1 SD change in input. Values near Β±1 indicate strong influence; values exceeding Β±1 may occur with correlated inputs.
Monte Carlo Distribution
Simulation Results Summary: Efficiency Gap / Treaty Funding
| Statistic | Value |
|---|---|
| Baseline (deterministic) | 180:1 |
| Mean (expected value) | 180:1 |
| Median (50th percentile) | 177:1 |
| Standard Deviation | 30.8:1 |
| 90% Range (5th-95th percentile) | [133:1, 239:1] |
The histogram shows the distribution of Efficiency Gap / Treaty Funding across 10,000 Monte Carlo simulations. The CDF (right) shows the probability of the outcome exceeding any given value, which is useful for risk assessment.
Exceedance Probability
This exceedance probability chart shows the likelihood that Efficiency Gap / Treaty Funding will exceed any given threshold. Higher curves indicate more favorable outcomes with greater certainty.
External Data Sources
Parameters sourced from peer-reviewed publications, institutional databases, and authoritative reports.
DOT VSL: $13.7M
DOT Value of Statistical Life (2024). Used by federal agencies to evaluate safety regulations and quantify the economic value of mortality risk reductions.
Source:19
Uncertainty Range
Technical: Distribution: Fixed
β High confidence
Global Military Spending in 2024: $2.72T
Global military spending in 2024
Source:48
Uncertainty Range
Technical: Distribution: Fixed
β High confidence
Medical QALY Threshold: $100K
Medical cost-effectiveness QALY threshold. Standard threshold for evaluating whether health interventions are cost-effective. Interventions below $100K/QALY are generally considered cost-effective.
Source:59
Uncertainty Range
Technical: Distribution: Fixed
β High confidence
US Federal Spending (FY2024): $6.80T
US federal government spending in FY2024. CBO reports outlays of $6.8T (23.9% of GDP). Includes mandatory spending, discretionary spending, and net interest ($888B).
Source:107
Uncertainty Range
Technical: Distribution: Fixed
β High confidence
US Federal Discretionary Spending (FY2024): $1.70T
US federal discretionary spending in FY2024. Approximately $886B defense + ~$814B non-defense discretionary = ~$1.7T. Used as denominator for discretionary efficiency rating (Cat 1 waste items are discretionary/fungible).
Source:107
Uncertainty Range
Technical: Distribution: Fixed
β High confidence
US GDP (2024): $28.8T
US GDP in 2024 dollars for calculating policy costs as percentage of GDP.
Source:108
Uncertainty Range
Technical: Distribution: Fixed
β High confidence
Agricultural Subsidies Deadweight Loss: $75B
Deadweight loss from US agricultural subsidies. Direct subsidies ~$30B/yr but create larger distortions: overproduction, environmental damage, benefits concentrated in large farms (top 10% receive 78% of subsidies). Total welfare loss ~$75B. Textbook example of capture; very high economist consensus. [CATEGORY 1: Direct Spending]
Source:109
Uncertainty Range
Technical: 95% CI: [$50B, $120B] β’ Distribution: Lognormal (SE: $25B)
What this means: Thereβs significant uncertainty here. The true value likely falls between $50B and $120B (Β±47%). This represents a wide range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The lognormal distribution means values canβt go negative and have a longer tail toward higher values (common for costs and populations).
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
β High confidence
Corporate Welfare Waste: $181B
Direct US federal corporate welfare: subsidies to agriculture ($16.4B), green energy tax credits, semiconductor aid, aviation support. Agricultural subsidies are highly regressive (top 10% receive 63%). Cato Institute forensic tally. [CATEGORY 1: Direct Spending]
Source:44
Uncertainty Range
Technical: 95% CI: [$150B, $220B] β’ Distribution: Normal (SE: $20B)
What this means: This estimate has moderate uncertainty. The true value likely falls between $150B and $220B (Β±19%). This represents a reasonable range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The normal distribution means values cluster around the center with equal chances of being higher or lower.
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
β High confidence
Drug War Cost: $90B
Annual cost of drug war: ~$41B federal drug control budget, ~$10B state/local enforcement, ~$40B incarceration and lost productivity. After 50+ years and $1T+ spent, drug use is higher than ever. [CATEGORY 1: Direct Spending]
Source:110
Uncertainty Range
Technical: 95% CI: [$60B, $150B] β’ Distribution: Lognormal (SE: $30B)
What this means: Thereβs significant uncertainty here. The true value likely falls between $60B and $150B (Β±50%). This represents a wide range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The lognormal distribution means values canβt go negative and have a longer tail toward higher values (common for costs and populations).
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
~ Medium confidence
Fossil Fuel Subsidies (Explicit): $50B
US explicit fossil fuel subsidies (direct payments, tax breaks). IMF estimates US total subsidies at $649B but ~92% is implicit (externalities). This figure includes only explicit subsidies (~$50B) for defensibility. [CATEGORY 1: Direct Spending]
Source:111
Uncertainty Range
Technical: 95% CI: [$30B, $80B] β’ Distribution: Lognormal (SE: $15B)
What this means: Thereβs significant uncertainty here. The true value likely falls between $30B and $80B (Β±50%). This represents a wide range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The lognormal distribution means values canβt go negative and have a longer tail toward higher values (common for costs and populations).
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
~ Medium confidence
Healthcare System Inefficiency: $1.20T
US healthcare spending inefficiency. US spends ~$4.5T/yr (18% GDP) vs 9-11% in comparable OECD countries with similar/better outcomes. Papanicolas et al. (2018 JAMA) and multiple studies document $1-1.5T in excess spending from administrative complexity, high prices, and poor care coordination. Very high economist consensus. [CATEGORY 4: System Inefficiency]
Source:112
Uncertainty Range
Technical: 95% CI: [$1T, $1.50T] β’ Distribution: Normal (SE: $150B)
What this means: This estimate has moderate uncertainty. The true value likely falls between $1T and $1.50T (Β±21%). This represents a reasonable range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The normal distribution means values cluster around the center with equal chances of being higher or lower.
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
β High confidence
Housing/Zoning Restrictions Cost: $1.40T
GDP loss from housing/zoning restrictions. Original Hsieh-Moretti (2019 AEJ:Macro) estimate of 36% GDP growth reduction was substantially revised by Greaney (2023). Current $1.4T represents a moderate estimate; revised lower bound implies ~$500B. [CATEGORY 3: GDP Loss]
Source:113
Uncertainty Range
Technical: 95% CI: [$500B, $2T] β’ Distribution: Lognormal (SE: $300B)
What this means: This estimate is highly uncertain. The true value likely falls between $500B and $2T (Β±54%). This represents a very wide range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The lognormal distribution means values canβt go negative and have a longer tail toward higher values (common for costs and populations).
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
~ Medium confidence
Military Overspend: $615B
US military spending above βStrict Deterrenceβ baseline. Current budget ~$900B supports global power projection (750+ bases). Strict Deterrence (nuclear triad $95B, Coast Guard $14B, National Guard $33B, Missile Defense $28B, Cyber $15B, defensive Navy/Air Force $100B) = ~$285B. Delta: $900B - $285B = $615B βHegemony Taxβ. [CATEGORY 1: Direct Spending]
Source:44
Uncertainty Range
Technical: 95% CI: [$500B, $750B] β’ Distribution: Normal (SE: $75B)
What this means: This estimate has moderate uncertainty. The true value likely falls between $500B and $750B (Β±20%). This represents a reasonable range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The normal distribution means values cluster around the center with equal chances of being higher or lower.
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
~ Medium confidence
Regulatory Red Tape Waste: $580B
Deadweight loss from US regulatory red tape (procedural friction without safety benefits). Competitive Enterprise Institute estimates total regulatory burden at $2.15T; European studies find red tape costs 0.1-4% of GDP. Conservative estimate: ~2% of US GDP = $580B. [CATEGORY 2: Compliance Burden]
Source:44
Uncertainty Range
Technical: 95% CI: [$290B, $1T] β’ Distribution: Lognormal (SE: $200B)
What this means: This estimate is highly uncertain. The true value likely falls between $290B and $1T (Β±61%). This represents a very wide range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The lognormal distribution means values canβt go negative and have a longer tail toward higher values (common for costs and populations).
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
~ Medium confidence
Tariff Cost (GDP Loss): $160B
Annual GDP reduction from US tariffs and retaliation. Yale Budget Lab estimates 0.6% smaller GDP in long run, equivalent to $160B annually. Trade barriers reduce efficiency and raise consumer prices. [CATEGORY 3: GDP Loss]
Source:114
Uncertainty Range
Technical: 95% CI: [$90B, $250B] β’ Distribution: Normal (SE: $50B)
What this means: Thereβs significant uncertainty here. The true value likely falls between $90B and $250B (Β±50%). This represents a wide range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The normal distribution means values cluster around the center with equal chances of being higher or lower.
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
~ Medium confidence
Tax Compliance Waste: $546B
Annual cost of US tax code compliance: 7.9 billion hours of lost productivity ($413B) plus $133B in out-of-pocket costs. Equals nearly 2% of GDP. Could be largely eliminated with simplified tax code or return-free filing. [CATEGORY 2: Compliance Burden]
Source:115
Uncertainty Range
Technical: 95% CI: [$450B, $650B] β’ Distribution: Normal (SE: $50B)
What this means: This estimate has moderate uncertainty. The true value likely falls between $450B and $650B (Β±18%). This represents a reasonable range that our Monte Carlo simulations account for when calculating overall uncertainty in the results.
The normal distribution means values cluster around the center with equal chances of being higher or lower.
Input Distribution
This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.
β High confidence
Core Definitions
Fundamental parameters and constants used throughout the analysis.
1% Reduction in Military Spending/War Costs from Treaty: 1%
1% reduction in military spending/war costs from treaty
Uncertainty Range
Technical: Distribution: Fixed
Core definition
Overlap Discount Factor: 1:1
Overlap discount factor between US government waste categories. Set to 1.0 (no discount). Categories are treated as additive, recognizing that any overlap is offset by excluded categories (state/local inefficiency, implicit subsidies, behavioral effects).
Uncertainty Range
Technical: Distribution: Fixed
Core definition
















































