Can fighting grade inflation help the bottom line?
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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Volume (Year): 17 (2010)
Issue (Month): 17 ()
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