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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, 2021. "A Quest for Knowledge," Papers 2102.13434, arXiv.org, revised Jul 2024.
    • Handle: RePEc:arx:papers:2102.13434
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    File URL: http://arxiv.org/pdf/2102.13434
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    References listed on IDEAS

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    1. Alessandro Iaria & Carlo Schwarz & Fabian Waldinger, 2018. "Frontier Knowledge and Scientific Production: Evidence from the Collapse of International Science," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(2), pages 927-991.
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    7. Pierre Azoulay & Danielle Li, 2020. "Scientific Grant Funding," NBER Chapters, in: Innovation and Public Policy, pages 117-150, National Bureau of Economic Research, Inc.
    8. Steven Callander & Nicolas S. Lambert & Niko Matouschek, 2021. "The Power of Referential Advice," Journal of Political Economy, University of Chicago Press, vol. 129(11), pages 3073-3140.
    9. Steven Callander & Niko Matouschek, 2019. "The Risk of Failure: Trial and Error Learning and Long-Run Performance," American Economic Journal: Microeconomics, American Economic Association, vol. 11(1), pages 44-78, February.
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    Cited by:

    1. Benjamin Davies, 2024. "Estimating sample paths of Gauss-Markov processes from noisy data," Papers 2404.00784, arXiv.org.

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