Utah State University Department of Economics
Copyright for this work is held by the author. Transmission or reproduction of materials protected by copyright beyond that allowed by fair use requires the written permission of the copyright owners. Works not in the public domain cannot be commercially exploited without permission of the copyright owner. Responsibility for any use rests exclusively with the user. For more information contact the Institutional Repository Librarian at email@example.com.
This paper estimates the deadweight loss associated with not failing an optimal number of students. We find that this loss ranges between $3,200 and $4,600 per student over the student's four-year undergraduate career. One possible ramification of adopting a more stringent student-failure policy (to recoup the deadweight loss) is investigated. We find that an institution can promote greater effort on the part of both students and faculty by encouraging faculty to fail more students.
Arthur J. Caplan. "Failing Students Optimally" Economics Research Institute Study Paper
Vol. 17 (2004) p. 1 - 29
Available at: http://works.bepress.com/arthur_caplan/93/