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Incentive Matters!-The Benefit of Reminding Students About Their Academic Standing in Introductory Economics Courses

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  • Qihui Chen
  • Tade O. Okediji

Abstract

In this article, the authors illustrate how incentives can improve student performance in introductory economics courses. They implemented a policy experiment in a large introductory economics class in which they reminded students who scored below an announced cutoff score on the midterm exam about the risk of failing the course. The authors employed a regression-discontinuity method to estimate the causal impact of their policy on students' performance on the final exam. The results suggest that the policy had a significant impact on students' performance on the final exam. In fact, the gain in test scores was sufficient to boost a student's overall course grade by one letter grade.

Suggested Citation

  • Qihui Chen & Tade O. Okediji, 2014. "Incentive Matters!-The Benefit of Reminding Students About Their Academic Standing in Introductory Economics Courses," The Journal of Economic Education, Taylor & Francis Journals, vol. 45(1), pages 11-24, March.
    • Handle: RePEc:taf:jeduce:v:45:y:2014:i:1:p:11-24
    DOI: 10.1080/00220485.2014.859955
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    Cited by:

    1. Qihui Chen & Tade Okediji & Tian Guoqiang, 2015. "Exploiting Regression-Discontinuity Design to Estimate Peer Effects in College – The Case of Class Attendance," Economics Bulletin, AccessEcon, vol. 35(3), pages 1563-1571.
    2. Gordanier, John & Hauk, William & Sankaran, Chandini, 2019. "Early intervention in college classes and improved student outcomes," Economics of Education Review, Elsevier, vol. 72(C), pages 23-29.
    3. Odell, Kathleen E., 2018. "Team-based learning and student performance: Preliminary evidence from a principles of macroeconomics classroom," International Review of Economics Education, Elsevier, vol. 29(C), pages 44-58.
    4. Jennjou Chen & Tsui-Fang Lin, 2016. "microeconomics courses: Evidence from a regression discontinuity design experiment," Economics Bulletin, AccessEcon, vol. 36(4), pages 2094-2116.

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