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Grade Inflation and Education Quality

Author

Listed:
  • Raphael Boleslavsky

    (Department of Economics, University of Miami)

  • Christopher Cotton

    (Department of Economics, University of Miami)

Abstract

We consider a game in which schools compete to place graduates in two distinct ways: by investing in the quality of education, and by strategically designing grading policies. In equilib- rium, schools issue grades that do not perfectly reveal graduate abilities. This leads evaluators to have less-accurate information. However, compared to fully-revealing assessments, strategic grading motivates greater investment in educating students. Although strategic grading distorts placement decisions, it can also increase graduate ability. Allowing grade in ation and related grading strategies can increase the probability that the evaluator selects a high-ability graduate.

Suggested Citation

  • Raphael Boleslavsky & Christopher Cotton, 2012. "Grade Inflation and Education Quality," Working Papers 2012-2, University of Miami, Department of Economics.
    • Handle: RePEc:mia:wpaper:2012-2
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Grade Inflation; Effort; Education Investment;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • I2 - Health, Education, and Welfare - - Education

    NEP fields

    This paper has been announced in the following NEP Reports:

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