Document Type
Article
Journal/Book Title/Conference
Applied Economics Letters
Volume
17
Issue
17
Publication Date
2010
First Page
1663
Last Page
1667
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.
Recommended Citation
Caplan, Arthur J. and John Gilbert (2010) “Can Fighting Grade Inflation Help the Bottom Line?” Applied Economics Letters, 17(17), 1663-1667.
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