Academic research is a public good whose production is supported by the tuition-paying students that a faculty's research accomplishments attract. A professor's spot contribution to the university's revenues thus depends not on her spot research production, but rather on her cumulative research record. We show that a profit-maximizing university will apply a `high' minimum retention standard to the production of a junior professor who has no record of past research, but a `zero' retention standard to the spot production of a more senior professor whose background includes accomplishments sufficient to have cleared the `high' probationary hurdle.
|Date of creation:||17 Jan 2009|
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- Bruce Cater & Byron Lew & Barry Smith, 2008. "A theory of tenure-track contracts," Education Economics, Taylor & Francis Journals, vol. 16(2), pages 203-218. Full references (including those not matched with items on IDEAS)
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