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Can fighting grade inflation help the bottom line?


  • Arthur Caplan
  • John Gilbert


This article 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 distribution-shifting policy.

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  • Arthur Caplan & John Gilbert, 2010. "Can fighting grade inflation help the bottom line?," Applied Economics Letters, Taylor & Francis Journals, vol. 17(17), pages 1663-1667.
  • Handle: RePEc:taf:apeclt:v:17:y:2010:i:17:p:1663-1667 DOI: 10.1080/13504850903251231

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    References listed on IDEAS

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    Cited by:

    1. Ehlers, Tim & Schwager, Robert, 2012. "Honest Grading, Grade Inflation and Reputation," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62051, Verein für Socialpolitik / German Economic Association.
    2. repec:got:cegedp:143 is not listed on IDEAS
    3. Ehlers, Tim & Schwager, Robert, 2012. "Honest grading, grade inflation and reputation," Center for European, Governance and Economic Development Research Discussion Papers 143, University of Goettingen, Department of Economics.

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