Journal
RAND JOURNAL OF ECONOMICS
Volume 47, Issue 3, Pages 498-528Publisher
WILEY
DOI: 10.1111/1756-2171.12135
Keywords
-
Categories
Ask authors/readers for more resources
This article studies how a government should distribute funds among research institutions and how it should allocate them to basic and applied research. Institutions differ in reputation and efficiency and have an information advantage. The government should award funding for basic research to induce the most productive institutions to carry out more applied research than they would like. Institutions with better reputation a do more research than otherwise identical ones, and applied research is inefficiently concentrated in the most efficient high-reputation institutions. The article provides theoretical support for a dual-channel funding mechanism but not for full economic costing.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available