We develop a model to rationalize and examine so-called "research bubbles", i.e. research activities based on … overoptimistic beliefs about the impact of this research on the economy. Research bubbles occur when researchers selfselect into … research activities and the government aggregates the assessment of active researchers on the way advances in research may spur …

We analyze the di fferential growth e ffects of basic research, applied research, and embodied human capital … and expenditures for basic research. Our results also indicate that raising public investments in basic research reduces … economy. These short-run costs of basic research might be an explanation for the reluctance of governments to increase public …

We analyze the differential growth effects of basic research, applied research, and embodied human capital accumulation … and expenditures for basic research. Our results also indicate that raising public investments in basic research reduces … economy. These short-run costs of basic research might be an explanation for the reluctance of governments to increase public …