Eastern Economic Journal

, Volume 36, Issue 2, pp 151–163

Grades, Course Evaluations, and Academic Incentives

  • David A Love
  • Matthew J Kotchen

DOI: 10.1057/eej.2009.6

Cite this article as:
Love, D. & J Kotchen, M. Eastern Econ J (2010) 36: 151. doi:10.1057/eej.2009.6


We develop a model that identifies a range of new and somewhat counterintuitive results about how the incentives created by academic institutions affect student and faculty behavior. The model provides a theoretical basis for grade inflation and the behavioral response of students. Comparative statics are used to analyze the effects of institutional expectations placed on faculty. The results show that placing more emphasis on course evaluations exacerbates the problems of grade inflation and can even decrease a professor's teaching effort. Increased emphasis on research productivity also decreases teaching effort and provides a further incentive to inflate grades. We use the model to analyze how grade targets can control grade inflation and align professorial incentives with institutional objectives. We also discuss the implications of the model for hiring, promotion, and tenure.


grade inflationcourse evaluationsteaching and research

JEL Classifications


Copyright information

© Eastern Economic Association 2010

Authors and Affiliations

  • David A Love
    • 1
  • Matthew J Kotchen
    • 2
  1. 1.Department of Economics, Williams College, South Academic Building, RM 202WilliamstownUSA
  2. 2.University of California, Santa Barbara and NBERCaliforniaUSA