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A for effort: an empirical analysis of the effect of competition on grade inflation in Swedish schools

Sporre, Hampus LU (2016) NEKN01 20161
Department of Economics
Abstract
I present a theoretical model for competitive interaction between schools and
grade inflation. To test the model, I estimate the effect of competition on
grade inflation in Swedish upper secondary schools using data from all schools
in the years 2012-2015. To solve the endogeneity problem of competition, I
use Instrumental Variable estimation with Fixed Effects. I use the sudden
shutdown of 17 schools due to the bankruptcy of the John Bauer Group in
2013 as an instrument for competition. The IV results and the exploration of
an adverse effect of grade inflation both support the theoretical model. The
IV results show that there is a causal effect of competition on grade inflation.
Please use this url to cite or link to this publication:
author
Sporre, Hampus LU
supervisor
organization
course
NEKN01 20161
year
type
H1 - Master's Degree (One Year)
subject
keywords
Grade inflation, competition, education, instrumental variables, fixed effects
language
English
id
8879497
date added to LUP
2016-06-22 14:25:27
date last changed
2016-06-22 14:25:27
@misc{8879497,
  abstract     = {I present a theoretical model for competitive interaction between schools and
grade inflation. To test the model, I estimate the effect of competition on
grade inflation in Swedish upper secondary schools using data from all schools
in the years 2012-2015. To solve the endogeneity problem of competition, I
use Instrumental Variable estimation with Fixed Effects. I use the sudden
shutdown of 17 schools due to the bankruptcy of the John Bauer Group in
2013 as an instrument for competition. The IV results and the exploration of
an adverse effect of grade inflation both support the theoretical model. The
IV results show that there is a causal effect of competition on grade inflation.},
  author       = {Sporre, Hampus},
  keyword      = {Grade inflation,competition,education,instrumental variables,fixed effects},
  language     = {eng},
  note         = {Student Paper},
  title        = {A for effort: an empirical analysis of the effect of competition on grade inflation in Swedish schools},
  year         = {2016},
}