Grades as Incentives

44 Pages Posted: 12 Dec 2008 Last revised: 21 Mar 2012

See all articles by Darren P. Grant

Darren P. Grant

Sam Houston State University - College of Business Administration - Department of Economics and International Business

William Green

Sam Houston State University - College of Business Administration - Department of Economics and International Business

Date Written: March 15, 2010

Abstract

This paper examines how grade incentives affect student learning across a variety of courses at two universities, using for identification the discrete rewards offered by the standard A-F letter grade system. We develop five predictions about effort provision in the presence of the thresholds that separate these discrete rewards, only one of which has been previously tested in the economics literature generally. All are rejected in our data. Either grade incentives do not influence student effort appreciably on the margin, or the additional effort in ineffective.

Keywords: educational assessment, thresholds, behavioral incentives

JEL Classification: I21, A22, D10

Suggested Citation

Grant, Darren P. and Green, William, Grades as Incentives (March 15, 2010). Empirical Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1313869 or http://dx.doi.org/10.2139/ssrn.1313869

Darren P. Grant (Contact Author)

Sam Houston State University - College of Business Administration - Department of Economics and International Business ( email )

SHSU Box 2118
Huntsville, TX 77341-2118
United States
936-294-4324 (Phone)

HOME PAGE: http://www.shsu.edu/dpg006

William Green

Sam Houston State University - College of Business Administration - Department of Economics and International Business ( email )

SHSU Box 2118
Huntsville, TX 77341-2118
United States

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