The Downside Risk of Elevation

12 Pages Posted: 18 Sep 2014

See all articles by Kerstin Bruckmeier

Kerstin Bruckmeier

Karlsruhe Institute of Technology

Georg-Benedikt Fischer

Karlsruhe Institute of Technology

Berthold U. Wigger

Karlsruhe Institute of Technology

Date Written: August 25, 2014

Abstract

Being granted a title enhances the status of the awardee while its loss has an opposite effect. The present article examines whether the latter effect dominates the former in the sense that elevation is less status-enhancing than relegation is status-damaging. Thereto, we use the three consecutive rounds of the German Excellence Initiative (a publicly funded program to promote outstanding research at German universities) as a natural experiment. We provide evidence that the loss of the title as a so-called “elite university” had a negative effect on the number of first year students. In contrast, we find no evidence for a positive effect on the number of first year students when a university is granted the title.

Keywords: reputation effect, excellence initiative, enrolment numbers

JEL Classification: H520, I230

Suggested Citation

Bruckmeier, Kerstin and Fischer, Georg-Benedikt and Wigger, Berthold U., The Downside Risk of Elevation (August 25, 2014). Available at SSRN: https://ssrn.com/abstract=2497314 or http://dx.doi.org/10.2139/ssrn.2497314

Kerstin Bruckmeier

Karlsruhe Institute of Technology ( email )

Kaiserstraße 12
Karlsruhe, Baden Württemberg 76131
Germany

Georg-Benedikt Fischer

Karlsruhe Institute of Technology ( email )

Kaiserstraße 12
Karlsruhe, Baden Württemberg 76131
Germany

Berthold U. Wigger (Contact Author)

Karlsruhe Institute of Technology ( email )

Kaiserstraße 12
Karlsruhe, Baden Württemberg 76131
Germany

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