The Penn Wharton Budget Model, an independent applied research organization housed at the Wharton School of the University of Pennsylvania, has announced a $6.6 million commitment from the Laura and John Arnold Foundation to develop high-quality tools for use in evaluating the economic and budgetary impact of federal policy proposals.
The grant will enable PWBM, which was incubated by the Penn Wharton Public Policy Initiative, to generate new tools for policy makers powered by sophisticated algorithms and modeling. With the tools, PWBM will be able to develop sophisticated forecasts regarding the policy impacts of tax reform, trade deals, and immigration over a longer time horizon than the standard ten-year budget window. According to PWBM, the tools will be transparent and user-friendly and will make analysis both more granular and wide-ranging by, among other things, adding census-level data into demographic features, modeling the diversity of corporations and firms in the United States, and incorporating the effects of global economic policy shifts on U.S. companies.
"We are delighted to receive this support from the Laura and John Arnold Foundation, which shares Wharton’s deep commitment to using data analytics to promote evidence-based decision making," said Wharton School dean Geoff Garrett. "At this crucial moment when so many policy makers, economists, and the public seek transparent, accurate sources of information, our goal is to be the authoritative academic resource at the intersection of business and policy for catalyzing productive social change, reducing anxiety and uncertainty, and exploring the myriad opportunities generated by technology and globalization."