Navigating the intricate labyrinth of legal jargon and processes can be especially daunting when grappling with the traumatic aftermath of a wrongful death. The uncharted territory of hiring a wrongful death lawyer begs the question of fiscal responsibility; how does one effectively budget for such an expense?

To begin, we must first understand what constitutes a wrongful death and its legal implications. A wrongful death, in legal parlance, occurs when a person's death is precipitated by the negligence or misconduct of another party. This breach of duty engenders a civil action known as a wrongful death claim, which is typically pursued by close relatives or the estate of the deceased.

Now, intertwining this knowledge with the denseness of the economic theory known as the Coase theorem, we can perceive that legal costs often reflect social costs. By this theorem, irrespective of initial distribution of rights, parties will bargain to an economically efficient outcome as long as transaction costs are negligible. In simpler terms, if it is more economical for the party liable for the wrongful death to compensate the bereaved party, then it should occur. However, this is rarely straightforward, hence the need for legal counsel, and ultimately, the need to budget for it.

The cost of hiring a wrongful death lawyer can significantly vary, primarily influenced by factors such as the complexity of the case, the lawyer's experience, and the billing method. The budgeting process should thus be informed by these variables.

The first step in budgeting is researching and understanding the common billing methods employed by wrongful death lawyers. Predominantly, there are two methods: hourly rate and contingency fee. The hourly rate, as the nomenclature suggests, means you pay the lawyer for every hour spent on your case. The contingency fee, on the other hand, is a percentage of the compensation awarded in the event of a favorable outcome. This is a risk-reward scenario based on Nash's Equilibrium principle, where the lawyer balances the risk of potential non-payment against the reward of a significant payout in a successful case.

The second step involves estimating potential legal costs by drawing comparisons and contrasts between the two pricing models. For an hourly rate, consider the lawyer's rate and the estimated duration of the case. For contingency fee cases, the percentage can range from 20% to 40% of the compensation. The choice between the two models should be informed by the potential award size, the case complexity, and your financial capacity.

Thirdly, consider auxiliary costs. These include expert witness fees, administrative costs, and court fees. These costs can be substantial, and they are often overlooked in the initial budgeting phase. Incorporating them into your budget is a prudent economic strategy, ensuring that you are not blindsided by hidden costs.

It is also important to note that these costs might be subject to a certain degree of moral hazard. This is an economic concept where one party may change their behavior due to the risk being shouldered by another party. In this case, a lawyer may choose to extend the duration or engage more expert witnesses if their fee is not directly linked with these costs.

Last but not least, contingency planning will help cushion against uncertainties. This reserve can be calculated based on a statistical concept called variance, which measures the spread of possible outcomes. A larger variance indicates a wider range of potential costs, hence requiring a larger reserve.

The process of budgeting for a wrongful death lawyer is an intricate balance between economic theories, legal knowledge, and statistical principles. It requires careful thought and planning. By understanding the various costs and developing a comprehensive budget, you can navigate this process, ensuring adequate financial resources are allocated towards securing justice for your lost loved one. This balance of fiscal responsibility, while pursuing justice, demonstrates the complex dance between economics and law.