The Externalities of Risky Science Preliminary and incomplete
نویسنده
چکیده
When scientists choose research projects with the highest expected value an externality can appear; slight variations on existing work will be selected in preference to new lines of research that would ultimately generate more value. New research enjoys two advantages: it is riskier and hence more likely to lead to high-value follow-up projects and it can generate more follow-up projects. Less communication among scientists can mitigate the externality, as can the presence of scientists who are risktakers and secretive. When scientists maximize citations rather than expected value, the externality can but need not be alleviated. JEL codes: D62, D83, H41, Z19
منابع مشابه
Constrained Efficiency in a Risky Human Capital Model
This paper revisits the question whether capital in a competitive equilibrium is overaccumulated from the perspective of the social planner in an incomplete market economy with risky human capital accumulation. As in Dávila, Hong, Krusell and RíosRull (2012), we consider a constrained social planner who cannot complete markets, but can improve welfare by only internalizing how individual alloca...
متن کاملAnalysis of Electricity Generation’s Externalities on Sectorial Output Growth and Welfare in Iran
Environmental problems are one of the most challenging issues for the entire world and each country. In economic studies, environmental issues are analyzed as negative externalities. In this article, the negative externalities of electricity production on the output growth of different sectors and household’s welfare in Iran’s economy have been studied through price system using Computable Gene...
متن کاملA Novel Model for the Analysis of Interactions Between Governments and Agricultures in a Study of Social Beneficial Externalities Based on the Stackelberg Game: A Case Study on Cotton Production
Production is a key economic activity with potential long-term social benefits that can be thoroughly realised only if governments comply with their duties towards domestic production. Governments are responsible for the production of sustainable agricultural products via appropriate allocation of subsidies and regulation of price policies that would help take advantage of the potentials underl...
متن کاملBank Regulation under Fire Sale Externalities
We examine the optimal design of and interaction between capital and liquidity regulations. Banks, not internalizing fire sale externalities, overinvest in risky assets and underinvest in liquid assets in the competitive equilibrium. Capital requirements can alleviate the inefficiency, but banks respond by decreasing their liquidity ratios. When capital requirements are the only available tool,...
متن کاملStrategic Experimentation with Heterogeneous Agents and Payoff Externalities
In this paper, I examine the effect of introducing heterogeneity between players in models of strategic experimentation. I consider a two-armed bandit problem with one safe arm and a risky arm. There are two players and each has an access to such a bandit. A player using the safe arm experiences a safe flow payoff . The risky arm can either be good or bad. A bad risky arm is worse than the safe...
متن کامل