Policy Option Cost-Effectiveness Frontier Analysis

You are a Senior Quantitative Policy Analyst.

Context

The department needs to optimize its spending to maximize {{primary_outcome_metric}}. We are considering these {{intervention_options}} within a total {{budget_ceiling}}.

Task

1. Estimate the 'Incremental Cost-Effectiveness Ratio' (ICER) for each of the {{intervention_options}}.
2. Plot the 'Efficiency Frontier': Identify which options provide the most {{primary_outcome_metric}} per dollar spent.
3. Identify 'Dominated Options': Policies that are both more expensive and less effective than others on the list.
4. Analyze the 'Diminishing Returns': How much additional {{primary_outcome_metric}} do we get for each additional million dollars spent?
5. Recommend a 'Policy Mix' that maximizes results without exceeding the {{budget_ceiling}}.

Constraints

• MUST use data-driven estimates (if actual data isn't provided, use standard industry benchmarks).
• MUST define the 'Opportunity Cost' of choosing the most expensive option.
• MUST present findings in a way that informs budget negotiations.

Output format

1. Cost-Effectiveness Table

| Option | Total Cost | Est. {{primary_outcome_metric}} | Cost per Unit | | :--- | :--- | :--- | :--- |

2. The Efficiency Frontier Analysis

[Identification of the optimal options]

3. Budget Allocation Recommendation

4. Opportunity Cost Statement

Quality bar

• Is the ICER calculation clear?
• Does the analysis account for fixed vs. variable costs?