The Matthew effect, research productivity, and the dynamic allocation of NIH grants.

Funding is important for research. However, research funding may suffer from the Matthew effect: the more researchers already have, the more they will be given. I develop an empirical framework to study how the National Institutes of Health (NIH) could allocate funding in a dynamically optimal manne...

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Published in:RAND Journal of Economics (Wiley-Blackwell) Vol. 54; no. 1; pp. 135 - 165
Main Author: Qiu, Y. J. Jeff
Format: Article
Published: Wiley-Blackwell Mar2023
Subjects:
Online Access:View this record in EBSCOhost
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        10.1111/1756-2171.12433
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        atl: The Matthew effect, research productivity, and the dynamic allocation of NIH grants.
      aug:
        au: Qiu, Y. J. Jeff
        affil: Yale University
      su:
        National Institutes of Health (U.S.)
        Grants (Money)
        Empirical research
        Matthew effect
        Endowment of research
        Endowments
        Research funding
      sug:
        subj:
          Grants (Money)
          Empirical research
          National Institutes of Health (U.S.)
          Other Grantmaking and Giving Services
          Grantmaking Foundations
          Matthew effect
          Endowment of research
          Endowments
          Research funding
      ab: Funding is important for research. However, research funding may suffer from the Matthew effect: the more researchers already have, the more they will be given. I develop an empirical framework to study how the National Institutes of Health (NIH) could allocate funding in a dynamically optimal manner by balancing funds between young and veteran principal investigators (PIs). I find that the discount factor that rationalizes NIH's funding behavior is about 0.75, implying it may underfund young PIs. Moreover, a temporary funding cut would have long‐lasting effects on overall research output through its adverse impact on investment in young PIs.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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