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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.

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  • Christoph Carnehl & Johannes Schneider, 2021. "A Quest for Knowledge," Papers 2102.13434, arXiv.org, revised Dec 2024.
    • Handle: RePEc:arx:papers:2102.13434
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    Cited by:

    1. Yongheng Hu, 2025. "Analysis Theory of Data Economy: Dataization, Technological Progress and Dynamic General Equilibrium," Papers 2507.13274, arXiv.org, revised Jul 2025.
    2. Benjamin Davies, 2024. "Estimating sample paths of Gauss-Markov processes from noisy data," Papers 2404.00784, arXiv.org.
    3. Herbert Dawid & Philipp Harting & Hankui Wang & Zhongli Wang & Jiachen Yi, 2025. "Agentic Workflows for Economic Research: Design and Implementation," Papers 2504.09736, arXiv.org.
    4. Benjamin Davies & Anirudh Sankar, 2025. "The value of conceptual knowledge," Papers 2509.09170, arXiv.org.

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