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A Quest for Knowledge

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  • Christoph Carnehl
  • Johannes Schneider

Abstract

Is more novel research always desirable? We develop a model in which knowledge shapes society's policies and guides the search for discoveries. Researchers select a question and how intensely to study it. The novelty of a question determines both the value and difficulty of discovering its answer. We show that the benefits of discoveries are nonmonotone in novelty. Knowledge expands endogenously step‐by‐step over time. Through a dynamic externality, moonshots—research on questions more novel than what is myopically optimal—can improve the evolution of knowledge. Moonshots induce research cycles in which subsequent researchers connect the moonshot to previous knowledge.

Suggested Citation

  • Christoph Carnehl & Johannes Schneider, 2025. "A Quest for Knowledge," Econometrica, Econometric Society, vol. 93(2), pages 623-659, March.
    • Handle: RePEc:wly:emetrp:v:93:y:2025:i:2:p:623-659
    DOI: 10.3982/ECTA22144
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    References listed on IDEAS

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    Cited by:

    1. Herbert Dawid & Philipp Harting & Hankui Wang & Zhongli Wang & Jiachen Yi, 2025. "Agentic Workflows for Economic Research: Design and Implementation," Papers 2504.09736, arXiv.org.

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