FISCAL STUDIES, vol. 29, no. 1, pp. 75–87 (2008) 0143-5671 Money for Science? The Impact of Research Grants on Academic Output* DANIEL CHUDNOVSKY,† ANDRÉS LÓPEZ,‡ MARTÍN A. ROSSI§ and DIEGO UBFAL◊ †Universidad de San Andrés; Centro de Investigaciones para la Transformación (
[email protected]) ‡Universidad de Buenos Aires; Centro de Investigaciones para la Transformación (
[email protected]) §Universidad de San Andrés (
[email protected]) ◊University of California at Los Angeles (
[email protected]) Abstract This paper evaluates the impact of subsidies on the academic performance of researchers in Argentina. Academic performance is measured in terms of number of publications and in terms of impact factors in peer-reviewed journals. The performance of researchers with financially supported projects is compared with that of a control group of researchers who submitted projects accepted in terms of quality but not supported because of shortage of funds. We use non-experimental data and a difference-in-differences approach along with propensity score matching techniques, where we control for pre-programme observable attributes as well as for researchers’ time-invariant unobservable characteristics. Our findings suggest a positive *Submitted July 2007. The comments of Samuel Berlinski (the editor), Sebastián Galiani, Alessandro Maffioli and two anonymous referees are gratefully acknowledged. The authors wish to thank Kimberly Jedlicka for editorial assistance. This study was originally developed as part of the project ‘IDB’s Science and Technology Programs: An Evaluation of the Technology Development Funds and Competitive Research Grants’, financed by the Office of Evaluation and Oversight of the Inter-American Development Bank.