Economics & Finance / Macroeconomics / Fiscal Policy & Government Spending

Does Government Funding Actually Boost Research? The Shocking Truth from New Zealand

New Zealand's Marsden Fund pours millions into basic research every year. But does the money actually make scientists more productive? This video breaks down a 2015 NBER study that analyzed over 1,200 grant applications and 1,500 researchers. The findings are surprising: - Grants increase paper output by 6-15% and high-impact citations by 22-26%. - But here's the kicker: the expert peer review system used to pick winners... doesn't actually predict which projects will succeed. - Young researchers get a special 'Fast-Start' grant, but they don't benefit more than seniors per dollar. We'll walk you through the data, the methods, and the uncomfortable conclusions. If you care about where your tax money goes or how science really works, this is a must-watch. Author: Dr. John Gibson (University of Waikato) and co-authors. Study published by the National Bureau of Economic Research.