Articles & Books
CERRE Studies and Policy Papers
GREEN Working Paper n.108
By Alessandro De Chiara, Elisabetta Iossa
We study how funding agencies should set budget caps for competitive grants. We show that budget caps influence the researchers’ submission strategy and, in particular, whether they steer their project choice towards the agencies’ favorite projects, and the level of funds they request. The welfare impact of alternative approaches depends on the level of competition, the cost of public funds and the social value of project implementation.
Keywords: Competitive Grants, Procurement of Innovation, Project Choice, Research Funding, Research Tournament.
JEL Classification: D8, O25, O30, O31, O38, L2.
Last updated 31 January 2019 - 14:42:42
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