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The Dynamic Effects of Educational Accountability

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  • Hugh Macartney

Abstract

Recent education accountability reforms feature school-level performance targets that condition on prior scores to account for student heterogeneity. Yet doing so introduces potential dynamic distortions to incentives: teachers may be less responsive to the reform today to avoid more onerous future targets--an instance of the so-called `ratchet effect.' Guided by a dynamic model and utilizing rich educational panel data from North Carolina, I exploit school grade span variation to identify any dynamic gaming, finding compelling evidence of ratchet effects. I then directly estimate the structural parameters of the corresponding model, uncovering complementarities between teacher effort and student ability.

Suggested Citation

  • Hugh Macartney, 2012. "The Dynamic Effects of Educational Accountability," Working Papers 12-09, Duke University, Department of Economics.
  • Handle: RePEc:duk:dukeec:12-09
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    Keywords

    Public; Education; Personnel; Dynamic Gaming; Dynamic Incentives; Ratchet Eff ects; Education Production; Educational Accountability;

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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