A variance decomposition in the evaluation of the effects of educational policies in economic education

Barry Ma and Jeffrey Weiss

Applied Economics Letters, 2009, vol. 16, issue 3, 239-242

Abstract: A student's grade is decomposed into a part due to ability plus a part due to random guessing. Holding the variance of the ability distribution constant, we show that the introduction of a positive educational policy will increase the mean but decrease the variance of the grade distribution.

Date: 2009
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DOI: 10.1080/13504850601018460

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