Article
Can Fighting Grade Inflation Help the Bottom Line?
Applied Economics Letters
Document Type
Article
Publication Date
1-1-2010
Disciplines
Abstract
This article uses a rich set of student transcript data to estimate the economic cost incurred by a university when it does not adopt a ‘mean-shift grading policy’ to fight grade inflation. We show that even in the face of moral hazard constraints a university can enhance its profitability by fighting grade inflation with a distribution-shifting policy.
Citation Information
Caplan, Arthur J. and John Gilbert (2010) “Can Fighting Grade Inflation Help the Bottom
Line?” Applied Economics Letters, 17(17), 1663-1667.