The Impact of False Investigators on Grant Funding

•Scholars who use false investigators receive more grant funding, on average.•The impact of false investigators on grant funding was about 70% across all grants.•Adding false investigators allowed scholars to submit more grants.•Adding false investigators did not affect the probability of winning an award. False investigators are researchers who have been listed on grant proposals as part of a research team even though there is no expectation that they will contribute to the research effort. Their use seems to be widespread even though their inclusion raises legal and ethical questions. Using data collected from the top 200 universities listed on U.S. News and World Report (2015), this manuscript investigates whether the use of false investigators impacts the distribution of research money and if so, by how much? Our analysis suggests they do, grants with false investigators receive more money, and while the size of this return varies with grant size, we find an average increase of about 70%. We also investigate how this influence is manifested; whether the increased funding is because false investigators apply for more grants, or if the presence of a false investigator increases the amount of funding received per proposal. We close with a discussion of policy issues and questions about research funding that remain unanswered.