Performance-related Funding of Universities – Does more Competition Lead to Grade Inflation?
German universities are regarded as being under-financed, inefficient, and performing below average if compared to universities in other European countries and the US. Starting in the 1990s, several German federal states implemented reforms to improve this situation. An important part of these reforms has been the introduction of indicator-based funding systems. These financing systems aimed at increasing the competition between universities by making their public funds dependent on their relative performance concerning different output measures, such as the share of students obtaining a degree or the amount of third party funds. This paper evaluates whether the indicator-based funding created unintended incentives, i.e. whether the reform caused a grade inflation. Estimating mean as well as quantile treatment effects, we cannot support the hypothesis that increased competition between universities causes grade inflation.
|Date of creation:||Oct 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.rwi-essen.de/
More information through EDIRC
|Order Information:||Web: http://www.rwi-essen.de/publikationen/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- B. Curtis Eaton & Mukesh Eswaran, 2008.
"Differential Grading Standards and Student Incentives,"
Canadian Public Policy,
University of Toronto Press, vol. 34(2), pages 215-236, June.
- Mukesh Eswaran, 2008. "Differential Grading Standards and Student Incentives," Working Papers 2008-11, Department of Economics, University of Calgary, revised 13 Feb 2008.
- Randall Reback, 2006.
"Teaching to the Rating: School Accountability and the Distribution of Student Achievement,"
0602, Barnard College, Department of Economics.
- Reback, Randall, 2008. "Teaching to the rating: School accountability and the distribution of student achievement," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1394-1415, June.
- Pedro S. Martins, 2009.
"Individual Teacher Incentives, Student Achievement and Grade Inflation,"
29, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
- Martins, Pedro S., 2009. "Individual Teacher Incentives, Student Achievement and Grade Inflation," IZA Discussion Papers 4051, Institute for the Study of Labor (IZA).
- Pedro Martins, 2010. "Individual Teacher Incentives, Student Achievement and Grade Inflation," CEE Discussion Papers 0112, Centre for the Economics of Education, LSE.
- Pedro S. Martins, 2010. "Individual teacher incentives, student achievement and grade inflation," LSE Research Online Documents on Economics 28285, London School of Economics and Political Science, LSE Library.
- Simon Burgess & Carol Propper & Helen Slater & Deborah Wilson, 2005.
"Who wins and who loses from school accountability? The distribution of educational gain in English secondary schools,"
The Centre for Market and Public Organisation
05/128, Department of Economics, University of Bristol, UK.
- Burgess, Simon & Propper, Carol & Slater, Helen & Wilson, Deborah, 2005. "Who wins and who loses from school accountability? The distribution of educational gain in English secondary schools," CEPR Discussion Papers 5248, C.E.P.R. Discussion Papers.
- Adele Atkinson & Simon Burgess & Bronwyn Croxson & Paul Gregg, 2004.
"Evaluating the Impact of Performance-related Pay for Teachers in England,"
The Centre for Market and Public Organisation
04/113, Department of Economics, University of Bristol, UK.
- Atkinson, Adele & Burgess, Simon & Croxson, Bronwyn & Gregg, Paul & Propper, Carol & Slater, Helen & Wilson, Deborah, 2009. "Evaluating the impact of performance-related pay for teachers in England," Labour Economics, Elsevier, vol. 16(3), pages 251-261, June.
- Siegfried, John J & Fels, Rendigs, 1979. "Research on Teaching College Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 17(3), pages 923-69, September.
- David A Love & Matthew J Kotchen, 2010. "Grades, Course Evaluations, and Academic Incentives," Eastern Economic Journal, Palgrave Macmillan, vol. 36(2), pages 151-163, Spring.
- Markus Frolich & Blaise Melly, 2010. "Estimation of quantile treatment effects with Stata," Stata Journal, StataCorp LP, vol. 10(3), pages 423-457, September.
- Kocher, Martin G. & Luptacik, Mikulas & Sutter, Matthias, 2006.
"Measuring productivity of research in economics: A cross-country study using DEA,"
Socio-Economic Planning Sciences,
Elsevier, vol. 40(4), pages 314-332, December.
- Martin G. Kocher & Mikulas Luptacik & Matthias Sutter, 2001. "Measuring Productivity of Research in Economics. A Cross-Country Study Using DEA," Department of Economics Working Papers wuwp077, Vienna University of Economics and Business, Department of Economics.
- Kocher, Martin G. & Luptácik, Mikulás & Sutter, Matthias, 2006. "Measuring productivity of research in economics: A cross-country study using DEA," Munich Reprints in Economics 18192, University of Munich, Department of Economics.
- Manuel Bagues & Mauro Sylos Labini & Natalia Zinovyeva, 2008. "Differential Grading Standards and University Funding: Evidence from Italy," Working Papers 2008-07, FEDEA.
When requesting a correction, please mention this item's handle: RePEc:rwi:repape:0288. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sabine Weiler)
If references are entirely missing, you can add them using this form.