Philadelphia, PA – In a significant boost to evidence-based policymaking, the Laura And John Arnold Foundation (LJAF) has committed $6.6 million to the Penn Wharton Budget Model (PWBM). This substantial investment, announced on May 2, 2017, will empower PWBM to develop cutting-edge tools for evaluating the economic and budgetary consequences of proposed federal policies. The funding underscores the Laura and John Arnold Foundation’s dedication to strengthening governmental and economic systems through informed decision-making.
The grant from the Laura and John Arnold Foundation will enable PWBM to refine its analytical capabilities by incorporating more sophisticated algorithms, detailed corporate data, and comprehensive modeling of global economic interactions. These enhancements will allow PWBM to extend its policy impact forecasts beyond the standard ten-year budget window, providing a more long-term perspective on critical issues such as taxation, international trade, Social Security, and immigration.
Housed within the prestigious Wharton School at the University of Pennsylvania, PWBM operates as a nonpartisan and independent research organization. It was established in 2016 by the Penn Wharton Public Policy Initiative with the mission to create a dynamic “sandbox” environment for policy analysis. PWBM achieves this by integrating advanced economic modeling techniques, big data analytics, cloud computing infrastructure, and user-friendly visualization tools. These resources are freely available to policymakers, journalists, and the public, facilitating a deeper understanding of the potential ramifications of policy choices.
“We are incredibly grateful for the Laura and John Arnold Foundation’s generous support, which aligns perfectly with Wharton’s commitment to leveraging data analytics for evidence-driven decision-making,” stated Geoffrey Garrett, Dean of the Wharton School. “At a time when clarity and accuracy are paramount, our ambition is for Wharton to serve as the leading academic authority at the nexus of business and policy. We aim to foster constructive societal progress, alleviate uncertainty, and explore the vast opportunities arising from technological advancements and globalization.” Dean Garrett’s statement highlights the strategic importance of the Laura and John Arnold Foundation’s funding in bolstering PWBM’s mission.
The forthcoming upgrades to PWBM’s models, thanks to the Laura and John Arnold Foundation’s investment, promise to deliver both greater detail and broader scope in policy evaluations. By integrating census-level demographic data, modeling the diverse landscape of U.S. corporations, and accounting for the influence of global economic policy shifts, PWBM will offer a more nuanced and comprehensive analysis. Furthermore, enhanced algorithms will enable users to project intricate demographic and economic trajectories for households across various life stages, from education to retirement. These advancements will significantly enrich the toolkit available to policymakers, media outlets, economists, and the general public seeking reliable policy insights. PWBM is committed to disseminating nonpartisan, educational resources to policymakers on Capitol Hill, publishing in-depth white papers, and promoting the broader adoption of fact-based methodologies in independent policy assessment.
Josh McGee, Vice President at the Laura and John Arnold Foundation, emphasized the rationale behind the investment: “Governments are entrusted with the responsibility of balancing societal well-being with fiscal prudence. Policy decisions must be approached thoughtfully and deliberately, with lawmakers relying on robust evidence to formulate effective policies. The Penn Wharton Budget Model offers precisely the kind of dependable tools that policymakers can utilize to assess the likely effects of different policy options and to identify strategies for fostering economic growth and opportunity.” This quote underscores the Laura and John Arnold Foundation’s focus on promoting responsible and effective governance.
Since its inception in June 2016, PWBM has rapidly become a trusted source for policy analysis, cited by over 100 prominent news organizations, including CNBC, the Wall Street Journal, CNN, Fortune, and Forbes. The platform has already facilitated over 300,000 user-driven simulations, demonstrating its wide reach and utility. Currently, users can explore the impacts of over 4,000 potential Social Security reforms and 125 immigration policy adjustments. PWBM also offers extensive analysis of tax reform proposals, encompassing more than 500 customizable parameters for assumptions, spending policies, and baseline modeling.
Kent Smetters, Wharton Boettner Professor and Professor of Business Economics and Public Policy, and the driving force behind PWBM, remarked, “In a short time since its launch last summer, the Penn Wharton Budget Model has already garnered attention and usage from numerous policymakers and commentators. This grant from the Laura and John Arnold Foundation provides a remarkable opportunity to elevate PWBM to a new level of sophistication. These additional capabilities will enhance the reliability of our analyses, make accurate information more readily accessible, and ultimately, we hope, contribute positively to the U.S. economy.” Professor Smetters’ vision aligns with the Laura and John Arnold Foundation’s goals for impactful philanthropy.
About the Laura and John Arnold Foundation (LJAF)
The Laura and John Arnold Foundation is dedicated to enhancing individual lives by strengthening the foundational systems of society – governmental, social, and economic. The foundation strategically invests in initiatives spanning criminal justice reform, education, evidence-based policy, sustainable public finance, and research integrity. With offices in Houston, New York, and Washington, D.C., the Laura and John Arnold Foundation operates nationally to achieve its philanthropic objectives.
About the Wharton School
Established in 1881 as the world’s first collegiate business school, the Wharton School of the University of Pennsylvania stands as a global leader in business education, renowned for its intellectual rigor and continuous innovation across all major business disciplines. With a vast global network and a faculty at the forefront of business research, Wharton is committed to generating enduring economic and social value worldwide. The School serves a diverse community of 5,000 undergraduate, MBA, executive MBA, and doctoral students, engages over 9,000 participants annually in executive education programs, and boasts a powerful alumni network of more than 95,000 graduates.
