IDEAS home Printed from https://ideas.repec.org/p/bcu/iefewp/iefewp108.html
   My bibliography  Save this paper

How to Set Budget Caps for Competitive Grants

Author

Listed:
  • Alessandro De Chiaraa
  • Elisabetta Iossa

Abstract

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.

Suggested Citation

  • Alessandro De Chiaraa & Elisabetta Iossa, 2019. "How to Set Budget Caps for Competitive Grants," IEFE Working Papers 108, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
  • Handle: RePEc:bcu:iefewp:iefewp108
    as

    Download full text from publisher

    File URL: ftp://ftp.unibocconi.it/pub/RePEc/bcu/papers/iefewp108.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Maarten Janssen & Eric Rasmusen, 2002. "Bertrand Competition Under Uncertainty," Journal of Industrial Economics, Wiley Blackwell, vol. 50(1), pages 11-21, March.
    2. Elazar Berkovitch, 2004. "Why the NPV Criterion does not Maximize NPV," Review of Financial Studies, Society for Financial Studies, vol. 17(1), pages 239-255.
    3. Gianni Fraja, 2016. "Optimal public funding for research: a theoretical analysis," RAND Journal of Economics, RAND Corporation, vol. 47(3), pages 498-528, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. De Chiara, Alessandro & Iossa, Elisabetta, 2019. "Public Procurement as a Demand-side Policy: Project Competition and Innovation Incentives," CEPR Discussion Papers 13664, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    Competitive Grants; Procurement of Innovation; Project Choice; Research Funding; Research Tournament;

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcu:iefewp:iefewp108. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elena Dal Zotto). General contact details of provider: http://edirc.repec.org/data/eabocit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.