Executive Summary: Balsa Research invites proposals for rigorous economic analysis examining the impact of Section 27 of the Merchant Marine Act of 1920 (the “Jones Act”) on the U.S. economy. We wish to aid in the development of new economic models to assess current impacts and project potential outcomes of policy reform.

Funding ranges from $5,000 to $60,000, with exceptional proposals receiving consideration for additional support. Applications will be reviewed on a rolling basis.

Background: Balsa Research seeks to engage qualified economists or research teams to conduct counterfactual analysis assessing the potential economic impact of modern-day Jones Act reform.

The Jones Act mandates that maritime cargo transported between U.S. ports must utilize vessels that are U.S.-built, U.S.-owned, U.S.-crewed, and U.S.-flagged. This cabotage law represents one of the most restrictive maritime policies among OECD nations, with significant implications for domestic commerce and energy markets.

Despite its century-long implementation, limited empirical analysis exists regarding the Act's contemporary economic impact, resulting in a knowledge gap for evidence-based policy discourse. The absence of counterfactual data presents methodological challenges that this research initiative aims to address.

Primary Research Objective: The primary objective of this research initiative is to develop and validate economic models that quantify the Jones Act and possible reforms’ impact on key economic indicators. We are particularly interested in estimates of effects on Gross Domestic Product (GDP), Consumer Price Index (CPI), and Congressional Budget Office (CBO) economic projections.

Additional Objectives: Beyond these core economic measures, we are interested in funding research into several secondary areas of impact. These include but are not limited to environmental and emissions impact assessments, regional variations in economic effects across different U.S. markets, and changes in inter-port trade volumes.

Scope of Work:

1. Preliminary analysis of the current impact of the Jones Act on domestic shipping costs and the US economy. This will establish baseline measurements of the Act's effects on maritime commerce, including direct shipping cost differentials and broader economic implications.

2. Development of an economic model to estimate the economic impact of the Jones Act, to be also used for counterfactual analysis.

3. Estimation of the impact on the American economy under alternative policy scenarios, including partial reforms such as removing solely the U.S.-built requirement, and full repeal.

4. Production of publication(s) that document the research methodology, empirical findings, and policy implications.

At minimum, grantees must deliver a reproducible model with documented code (if applicable), and a journal-submission-ready manuscript.

While we anticipate most proposals will address all four components, we welcome applications that demonstrate exceptional strength in specific areas of the scope. Proposals focusing on particular components should clearly indicate how their work would integrate with complementary research efforts. We are also open to innovative methodological approaches that achieve our research objectives through alternative means.

Funding: Base funding for this initiative ranges from $5,000 to $60,000. Budget proposals should comprehensively account for personnel costs including salary or wages with appropriate fringe benefits, data acquisition expenses, and costs associated with the publication and dissemination of findings.

We suggest applying for a range of amounts, from the minimal amount necessary to successfully meet a research objective, to the largest amount such that no extra money would buy any additional productivity. If promising applications exceed our current funding levels, we will fundraise for the remainder rather than reject the application.

We also recognize the potential for exceptionally promising and comprehensive proposals that may require additional resources (e.g. for full labs). For such cases, we are prepared to consider significantly more funding. 

Balsa Research will additionally reimburse up to $5000 in article-processing charges (APCs) for one peer-reviewed journal article that results directly from the funded project. This reimbursement applies only to APCs not already covered by institutional agreements, waivers, or other funding sources. Reimbursement is issued upon receipt of the publisher’s APC invoice.

Eligibility and Expertise:  To be eligible for consideration, projects must include at least one investigator who holds a faculty appointment or is enrolled as a graduate student at a U.S. college or university. Applications involving collaborations with think tanks or industry economists are welcomed.

The ideal research team will have experience in economic modeling and analysis, with particular strengths in industrial organization, trade economics, or transport economics, supported by a track record of peer-reviewed publications in relevant fields.

Proposal Requirements:

Letter of Inquiry (Strongly Encouraged)

Applicants may submit a brief 2-3 page letter of inquiry before preparing a full proposal. LOIs should include:

• Research question and approach

• Team qualifications and relevant experience

• Estimated budget range and timeline

• Preliminary thoughts on methodology and outputs

LOI authors will receive feedback within 2 weeks indicating: (a) strong fit - proceed to full proposal, (b) potential fit with suggested modifications, or (c) unlikely fit with explanation.

Full Proposal Requirements

Whether proceeding from an LOI or submitting directly, full proposals must include:

1. Detailed description of the proposed methodology.

2. Estimated timeline and major project milestones.

3. Budget proposal, including a breakdown of costs.

4. Information on the researcher or research team, including a summary of qualifications and relevant prior work in addition to CVs.

5. A conflict of interest statement describing any financial or other interests of the research team that might bear on the proposed work, especially any financial or other ties to the transportation industry.

6. If focusing on only a part of the scope, an outline of how this work will fit into the larger project objective.

Submission Process: We strongly encourage but do not require the submission of a letter of inquiry. Direct full proposals are also welcome but have a higher risk of misalignment.

Applications should be submitted to https://forms.gle/bYL1sRooDEye9aEU9 .

All proposals that meet the requirements will be considered by our review committee of subject matter experts, including economists and policy analysts familiar with the Jones Act. Proposals will be evaluated on the robustness of the proposed methodology, the relevance and expertise of the team, feasibility of the timeline, and overall cost-effectiveness.

Applicants will be notified of funding decisions within 45 days of complete submission.

Inquiries: For further information or questions regarding this RFA, please contact Jennifer Chen (jenn@balsaresearch.com).