Setting the Budget for Targeted Research Projects-Reference-Cited by-同舟云学术

Setting the Budget for Targeted Research Projects

Published:2021-06-07 Issue:3 Volume:21 Page:1013-1034
ISSN:1935-1682
Container-title:The B.E. Journal of Economic Analysis & Policy
language:en
Short-container-title:

Author:

De Chiara Alessandro¹²^ORCID,Iossa Elisabetta³⁴

Affiliation:

1. Universitat de Barcelona and Barcelona Economic Analysis Team (BEAT) , Avinguda Diagonal 696 , 08034 , Barcelona , Spain

2. Central European University , 9 Nádor utca , Budapest 1051 , Hungary

3. Department of Economics and Finance , University of Rome Tor Vergata , Via Columbia 2 , 00133 , Rome , Italy

4. Green-Bocconi , Via Röntgen, 1 , 20136 Milan , Italy

Abstract

Abstract We consider a funding competition for targeted projects. Potential participants have stochastic opportunity costs, and do not know the number of competitors. The funding agency sets a budget cap indicating the maximum funding that participants may request. We show that raising the budget cap helps to attract more participants but causes an increase in the requested funds. A higher budget cap is optimal when the preferences of researchers and the funding agency are more congruent, competition is lower, targeted projects have larger social value, the cost of public funds is smaller, or bidding preparation costs are lower.

Publisher

Walter de Gruyter GmbH

Subject

Economics, Econometrics and Finance (miscellaneous),Economics and Econometrics

Link

https://www.degruyter.com/document/doi/10.1515/bejeap-2020-0347/pdf

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