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The Matthew effect, research productivity, and the dynamic allocation of NIH grants

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  • Y. J. Jeff Qiu

Abstract

Funding is important for research. However, research funding may suffer from the Matthew effect: the more researchers already have, the more they will be given. I develop an empirical framework to study how the National Institutes of Health (NIH) could allocate funding in a dynamically optimal manner by balancing funds between young and veteran principal investigators (PIs). I find that the discount factor that rationalizes NIH's funding behavior is about 0.75, implying it may underfund young PIs. Moreover, a temporary funding cut would have long‐lasting effects on overall research output through its adverse impact on investment in young PIs.

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  • Y. J. Jeff Qiu, 2023. "The Matthew effect, research productivity, and the dynamic allocation of NIH grants," RAND Journal of Economics, RAND Corporation, vol. 54(1), pages 135-164, March.
    • Handle: RePEc:bla:randje:v:54:y:2023:i:1:p:135-164
    DOI: 10.1111/1756-2171.12433
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