Honest grading, grade inflation and reputation
When grades lose their informative value because the percentage of students receiving the best grade rises without any corresponding increase in ability, this is called grade inflation. Conventional wisdom says that such grade inflation is unavoidable since it is essentially costless to award good grades. In this paper, we point out an effect driving into the opposite direction: Grade inflation is not actually costless, since it has an impact on future cohorts of graduates, or, put differently, by grading honestly, a school can build up reputation. Introducing a concern for reputation into an established signaling model of grading, we show that this mechanism reduces or even avoids grade inflation.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: Platz der Göttinger Sieben 3, 37073 Göttingen|
Web page: http://www.cege.wiso.uni-goettingen.de/
More information through EDIRC
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.:
- Arthur Caplan & John Gilbert, 2010. "Can fighting grade inflation help the bottom line?," Applied Economics Letters, Taylor & Francis Journals, vol. 17(17), pages 1663-1667.
- 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.
- Pedro Martins, 2010. "Individual Teacher Incentives, Student Achievement and Grade Inflation," CEE Discussion Papers 0112, Centre for the Economics of Education, LSE.
- Martins, Pedro S., 2009. "Individual Teacher Incentives, Student Achievement and Grade Inflation," IZA Discussion Papers 4051, Institute for the Study of Labor (IZA).
- 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.
- Damiano, Ettore & Li, Hao & Suen, Wing, 2008.
Econometric Society, vol. 3(3), September.
- Ettore Damiano & Hao Li & Wing Suen, 2006. "Credible Ratings," Working Papers tecipa-219, University of Toronto, Department of Economics.
- Damiano, Ettore & Li, Hao & Suen, Wing, 2006. "Credible Ratings," Microeconomics.ca working papers damiano-06-01-17-01-56-45, Vancouver School of Economics, revised 17 Jan 2006.
- Robertas Zubrickas, 2008.
Economics of Education Working Paper Series
0027, University of Zurich, Institute for Strategy and Business Economics (ISU).
- Talia Bar & Vrinda Kadiyali & Asaf Zussman, 2012. "Putting Grades in Context," Journal of Labor Economics, University of Chicago Press, vol. 30(2), pages 445 - 478.
- Sergey V. Popov & Dan Bernhardt, 2013.
"University Competition, Grading Standards, And Grade Inflation,"
Western Economic Association International, vol. 51(3), pages 1764-1778, 07.
- Popov, Sergey V. & Bernhardt, Dan, 2010. "University Competition, Grading Standards and Grade Inflation," MPRA Paper 26461, University Library of Munich, Germany.
- Wayne A. Grove & Tim Wasserman, 2004. "The Life-Cycle Pattern of Collegiate GPA: Longitudinal Cohort Analysis and Grade Inflation," The Journal of Economic Education, Taylor & Francis Journals, vol. 35(2), pages 162-174, April.
- Bauer, Thomas K. & Grave, Barbara S., 2011.
"Performance-related Funding of Universities: Does More Competition Lead to Grade Inflation?,"
IZA Discussion Papers
6073, Institute for the Study of Labor (IZA).
- Bauer, Thomas K. & Grave, Barbara S., 2011. "Performance-related Funding of Universities – Does more Competition Lead to Grade Inflation?," Ruhr Economic Papers 288, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
- Himmler, Oliver & Schwager, Robert, 2007.
"Double Standards in Educational Standards: Are Disadvantaged Students Being Graded More Leniently?,"
ZEW Discussion Papers
07-016, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Oliver Himmler & Robert Schwager, 2013. "Double Standards in Educational Standards – Do Schools with a Disadvantaged Student Body Grade More Leniently?," German Economic Review, Verein für Socialpolitik, vol. 14(2), pages 166-189, 05.
- Lydia Mechtenberg, 2006. "Cheap Talk in the Classroom," SFB 649 Discussion Papers SFB649DP2006-019, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
- Philip Babcock, 2010. "Real Costs Of Nominal Grade Inflation? New Evidence From Student Course Evaluations," Economic Inquiry, Western Economic Association International, vol. 48(4), pages 983-996, October.
- Talia Bar & Vrinda Kadiyali & Asaf Zussman, 2009. "Grade Information and Grade Inflation: The Cornell Experiment," Journal of Economic Perspectives, American Economic Association, vol. 23(3), pages 93-108, Summer.
- 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:zbw:cegedp:143. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.