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Incentive Matters!-The Benefit of Reminding Students About Their Academic Standing in Introductory Economics Courses

Qihui Chen () and Tade Okediji

The Journal of Economic Education, 2014, vol. 45, issue 1, 11-24

Abstract: In this article, the authors illustrate how incentives can improve student performance in introductory economics courses. They implemented a policy experiment in a large introductory economics class in which they reminded students who scored below an announced cutoff score on the midterm exam about the risk of failing the course. The authors employed a regression-discontinuity method to estimate the causal impact of their policy on students' performance on the final exam. The results suggest that the policy had a significant impact on students' performance on the final exam. In fact, the gain in test scores was sufficient to boost a student's overall course grade by one letter grade.

Date: 2014
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DOI: 10.1080/00220485.2014.859955

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