Can Fighting Grade Inflation Help the Bottom Line?
نویسندگان
چکیده
This paper uses a rich set of student transcript data to estimate the economic cost incurred by a university when it does not adopt a `mean-shift grading policy' to fight grade inflation. We show that even in the face of moral hazard constraints a university can enhance its profitability by fighting grade inflation with a distributionshifting policy.
منابع مشابه
Empirical Seismic Vulnerability and Damage of Bottom Frame Seismic Wall Masonry Structure: A Case Study in Dujiangyan (China) Region
In order to understand the seismic performance and mechanism of bottom frame seismic wall masonry structure (BFSWMS) and its vulnerability in empirical seismic damage, based on the statistical and numerical analysis of the field seismic damage observation data of 2178 Dujiangyan structures in the Wenchuan great earthquake urban of China on May 12, 2008, a non-linear function model between the s...
متن کاملSimple Monetary Rules Under Fiscal Dominance
This paper asks whether an aggressive monetary policy response to inflation is feasible in countries that suffer from fiscal dominance, as long as monetary policy also responds to fiscal variables. We find that if nominal interest rates are allowed to respond to government debt, even aggressive rules that satisfy the Taylor principle can produce unique equilibria. But following such rules resul...
متن کاملHonest Grading, Grade Inflation and Reputation
When grades lose their informative value because the percentage of students receiving the best grade rises without any corresponding increase in ability, this is called grade inflation. Conventional wisdom says that such grade inflation is unavoidable since it is essentially costless to award good grades. In this paper, we point out an effect driving into the opposite direction: Grade inflation...
متن کاملNew Evidence on the Output Cost of Fighting Inflation
T he Federal Reserve has made significant progress toward price stability over the last two decades. The annual inflation rate has declined from 13 percent in the early 1980s to roughly 2 percent today. The current environment of low and stable inflation has fostered superior economic performance. Lower inflation has led to lower interest rates, which in turn have helped spur investment, foster...
متن کامل3 Equilibria with zero output gaps
This paper provides an interesting explanation of the Great Inflation. It starts with the assumption that the Fed objectives were to stabilize the output gap and maintain “continuity” of the interest rate” and then presents a model where inflation becomes a stochastic trend. In particular, inflation increases with negative innovations in potential-output growth. Fed monetary policy is seen as s...
متن کامل