nep-edu New Economics Papers
on Education
Issue of 2007‒12‒08
fourteen papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. Turning science into business: A case study of a major European research university. By Azèle Mathieu; Martin Meyer; Bruno Van Pottelsberghe
  2. Higher education and equality of opportunity in Italy By Laura Serlenga; Vito Peragine
  3. The Effects of Remedial Mathematics on the Learning of Economics: A Natural Experiment By Johan N.M. Lagerlöf; Andrew J. Seltzer
  4. Do Charter Schools Affect Property Values? By John B. Horowitz; Stanley R. Keil; Lee C. Spector
  5. Grade Inflation under the Threat of Students' Nuisance: Theory and Evidence By Wan-Ju Iris Franz
  7. Factors That Affect Teaching Scores in Economics Instruction: Analysis of Student Evaluation of Teaching (SET) Data By Mohammad Alauddin; Clem Tisdell
  8. Regional returns to physical capital: are they conditioned by educational attainment? By Enrique Lopez-Bazo; Rosina Moreno
  9. Tenure and Output By Kathryn Shaw; Edward P. Lazear
  10. The Economic Impacts of Iowa State University in Fiscal 2006 By Swenson, David A.; Eathington, Liesl
  12. Altruism, Exchange and Crowding Out of Private Support to the Elderly: Evidence from a Demogrant in Mexico By Laura Juarez
  13. Il finanziamento pubblico alla ricerca spiazza l’investimento privato in ricerca? Analisi ed implicazioni per la crescita economica dei paesi By Coccia Mario
  14. Accelerated Development of Organizational Talent By Konstantin Korotov

  1. By: Azèle Mathieu (Centre Emile Bernheim, Solvay Business School, Université Libre de Bruxelles, Brussels.); Martin Meyer (SPRU - Science & Technology Policy Research Freeman Centre University of Sussex, Brighton, United Kingdom.); Bruno Van Pottelsberghe (Centre Emile Bernheim, Solvay Business School, Université Libre de Bruxelles, Brussels and DULBEA, Université Libre de Bruxelles and ECARES, Université Libre de Bruxelles.)
    Abstract: The ‘entrepreneurial university’ is an increasingly frequent notion in debates about new ways of knowledge production and the changing relationships between university, industry and government. A rich literature has developed exploring outputs of such activity, most notably ‘patenting’, ‘licensing’, and ‘spin-outs’. There is also a literature exploring the organisational process in institutes of higher education (HEI’s). All too often these two streams of literature ignore each other. The objective of this paper is to make a bridging contribution by exploring the case of Université Libre de Bruxelles (U.L.B.). The main research question is: Does it pay to make the entire university entrepreneurial? Our observations suggest that this would be an effort that could possibly overstretch an institution’s resources. The U.L.B. case illustrates the potential for nurturing entrepreneurial activities locally as well as the possibilities and limitations of top-down actions instilling entrepreneurial culture mongst academic rank and file.
    Keywords: technology transfer, entrepreneurial university, patent, licenses, spin-off
    JEL: D23 M13 O31 O32 O34
    Date: 2007–12
  2. By: Laura Serlenga (University of Bari); Vito Peragine (University of Bari)
    Abstract: This paper proposes a definition of equality of educational opportunities. Then, it develops a comprehensive model that allows to test for the existence of equality of opportunity in a given distribution and to rank distributions according to equality of opportunity. Finally, it provides an empirical analysis of equality of opportunity for higher education in Italy.
    Keywords: Equality of Opportunity, Higher Education, Stochastic Dominance
    JEL: D63 I2 C14
    Date: 2007
  3. By: Johan N.M. Lagerlöf (Department of Economics, Royal Holloway, University of London); Andrew J. Seltzer (Department of Economics, Royal Holloway, University of London)
    Abstract: This paper examines the effects of remedial mathematics on performance in university-level economics courses using a natural experiment. We study exam results prior and subsequent to the implementation of a remedial mathematics course that was compulsory for a sub-set of students and unavailable for the others, controlling for background variables. We find that, consistent with previous studies, the level of and performance in secondary-school mathematics has strong predictive power on students’ performance at university-level economics. However, the evidence for a positive effect of remedial mathematics on student performance is relatively weak and is limited to a few sub-groups of students.
    Keywords: remedial mathematics, teaching of economics, difference-in-differences, heterogeneous treatment effects, quantile regressions.
    JEL: A22 I20
    Date: 2007–08
  4. By: John B. Horowitz (Department of Economics, Ball State University); Stanley R. Keil (Department of Economics, Ball State University); Lee C. Spector (Department of Economics, Ball State University)
    Abstract: Taxpayers are concerned that introducing a charter school in their neighborhood will decrease their property values. We test this proposition by using three methods. We test the size and significance of the distance from a charter school with respect to property values; weather the intervention of a charter school changes the forecasted value of the property; and if the distance from a charter school has a different impact than the distance from a public school in similar neighborhoods. For the most part, we find little evidence that the existence of a charter school affects property values.
    Date: 2007–11
  5. By: Wan-Ju Iris Franz (Department of Economics, University of California-Irvine)
    Abstract: This study examines a channel, students’ nuisance, to explain grade inflation. “Students’ nuisance” is defined by “students’ pestering the professors for better grades.” This paper contains two parts: the game theoretic model and the empirical tests. The model shows that the potential threat of students’ nuisance can induce the professors to inflate grades. Ceteris paribus, a student is more likely to study little and to pester the professor for a better grade if: 1. the professor is lenient; 2. the studying cost is high; 3. the reward from pestering is high; 4. the cost of pestering is low. My original survey data show that 70%+ of professors think that students’ nuisance is “annoying” and “costly in terms of time, effort, and energy.” Regression results indicate that themore the student values the grade, the higher the studying cost, and the more likely the student is to pester the professor.
    Keywords: Grade inflation; Grade exaggeration; Students' nuisance
    JEL: D82 I20 I21
    Date: 2007–11
  6. By: Popovic, Milenko
    Abstract: One of the most interesting facts about the growth of developed nations, especially of the US growth, in the last three decades is significant growth of the ratio of the wage of skilled labor to that of unskilled labor. At the same time, existing evidence seems to suggest that the ratio of the rate of return on investment in skilled labor to that of unskilled labor has stayed pretty stable. This contradicting trend in movement of two ratios is formally easy to explain. Being aware of the fact that all possible measures of the rate of return in education confront, in one way or another, differences in wages of different educational levels with the cost of reaching the concerned level of education, we can with certainty conclude that, in order to keep the rate of return ratio unchanged, the increase of wage ratio should be accompanied with adequate increase in the ratio of the cost of reaching a skilled level of education to the cost of reaching an unskilled level. This is something that follows from identity and as such cannot be questioned. The real question here refers to a possible source of relative increase in the cost of reaching skilled level of education. Possibilities are here enormous and every developed country presents a different story. The purpose of this article is to shed a light on one of the sources of education cost growth which is common to all developed countries and which can explain the greatest part of education cost ratio increase in all developed countries. In what follows we will show that the increase in the cost of education ratio is mostly due, first, to the fact that technological progress in industry of education is negligible, second, to the fact that “products” of industry of education are nontradeables, and third, to the increase of wage ratio itself.
    Keywords: Inequality; Growth; Capital of Education; Costs of Education
    JEL: O47 O15 J01
    Date: 2007–06–25
  7. By: Mohammad Alauddin; Clem Tisdell (School of Economics, The University of Queensland)
    Abstract: This paper explores the factors that affect students’ evaluations of economics instructions using a sample of over 2400 completed questionnaires at a large Australian university. Ordered probit analysis is used to determine the changes in the predicted probability of teaching evaluation (TEVAL) scores with variations, amongst other things, in students’ perceptions of the quality of presentation; explanation and organization of lecture material; and helping students improve their learning skills. Analyses of the comparative importance of the relationships both for undergraduate and postgraduate courses reveal significant differences across levels of the undergraduate program but little differences in students’ responses in higher level undergraduate and postgraduate instructions. One disturbing finding is that a key variable, namely emphasis on thinking rather than memorizing (THINKMEM) has little or no substantive impact on TEVAL. Thus the implication is that high TEVALs can be achieved at the cost of some critically important factors in teaching and learning. Consequently, those using just TEVAL score to evaluate teaching need to look closely at other factors of critical importance.
    Date: 2007
  8. By: Enrique Lopez-Bazo (Faculty of Economics, University of Barcelona); Rosina Moreno (Faculty of Economics, University of Barcelona)
    Abstract: This paper provides novel empirical evidence of the indirect effect of educational attainment on regional economic growth, through its influence on the profitability of investment in physical capital. We test the hypothesis that the regional heterogeneity of the return to physical capital can be directly related to the existing heterogeneity in the educational attainment of workers. The results for the Spanish case support our hypothesis that the higher the educational attainment of workers the greater the returns on investment in physical capital. In fact, this effect seems to be sufficiently strong to have counterbalanced the traditional mechanism of decreasing returns to capital accumulation.
    Keywords: returns to capital, human capital, productivity, cost system
    JEL: J24 O11 O47 R11
    Date: 2007–12
  9. By: Kathryn Shaw; Edward P. Lazear
    Abstract: A key tenet of the theory of human capital is that investment in skills results in higher productivity. The previous literature has estimated the degree of investment in human capital for individuals by looking at individual wage growth as a proxy for productivity growth. In this paper, we have both wage and personal productivity data, and thus are able to measure of the increase in workers' output with tenure. The data is from an autoglass company. Most of production occurs at the individual level so measures of output are clear. We find a very steep learning curve in the year on the job: output is 53 percent higher after one year than it is initially when hired. These output gains with tenure are not reflected in equal percentage pay gains: pay profiles are much flatter than output profiles in the first year and a half on the job. For these data, using wage profiles significantly underestimates the amount of investment compared to the gains evident in output-tenure profiles. The pattern of productivity rising more rapidly than pay reverses after two years of tenure. Worker selection is also important. Workers who stay longer have higher output levels and faster early learning.
    JEL: J01 J24 J31 J33
    Date: 2007–11
  10. By: Swenson, David A.; Eathington, Liesl
    Abstract: Iowa State University has a strong economic impact in the state of Iowa. A portion of that impact is attributable to the university's role educating Iowa students and providing community services via its Extension services and through other outreach activities. Another portion of the university's impact is due to its role as center for a wide variety of research activities -- activities that are funded largely by non-Iowa firms and governments. In addition, ISU students directly and indirectly contribute strongly to the central Iowa economy. This report measures the value of ISU to the overall Iowa economy.
    JEL: O1
    Date: 2007–11–29
  11. By: Enrique Lopez-Bazo (Faculty of Economics, University of Barcelona); Rosina Moreno (Faculty of Economics, University of Barcelona)
    Abstract: The direct effect of human capital on economic growth has been widely analysed in the economic literature. This paper, however, focuses on its indirect effect as a stimulus for private investment in physical capital. The methodological framework used is the duality theory, estimating a cost system aggregated with human capital. Empirical evidence is given for Spain for the period 1980-2000. We provide evidence on the indirect effect of human capital in making private capital investment more attractive. Among the main explanations for this process, we observe that higher worker skill levels enable higher returns to be extracted from investment in physical capital.
    JEL: C30 J24 O11 O47
    Date: 2007–12
  12. By: Laura Juarez (Centro de Investigacion Economica (CIE), Instituto Tecnologico Autonomo de Mexico (ITAM))
    Abstract: This paper uses a recent demogrant for the elderly in Mexico City to estimate the e¤ect of an exogenous increase in the income of older individuals on the amount of private transfers they receive. My results show that not controlling for the endogeneity of income replicates the positive or small negative e¤ects of income on the amount of private transfers received obtained by previous work. In contrast, my instrumental variables strategy yields negative and signi.cant income e¤ects, not far from the minus one implied by altruistic models, suggesting that a change in the public resources for elderly could be neutralized by the response of private transfers.
    Date: 2007–11
  13. By: Coccia Mario (Ceris - Institute for Economic Research on Firms and Growth, Moncalieri (TO), Italy)
    Abstract: The purpose of this paper is to analyze the relationship between public and private funding for research. Data from Eurostat are used. The methodology applies descriptive statistics, correlation, regression and cluster analyses. The main results are: public funding for research crowds out business funding one; moreover private rather than public funding for research is the cause of economic growth of countries. The best economic performance has been achieved by the USA, followed by Europe and Japan. Italy instead has higher public funds of research than private one and the result is low rate of economic growth over time.
    Keywords: Research Funding, Economic Growth, Comparative Study, Research Policy, Crowding-out
    JEL: C00 E00 E60 H50 O38 O40 O57
    Date: 2007–06
  14. By: Konstantin Korotov (ESMT European School of Management and Technology)
    Abstract: This working paper explores the challenges of accelerated development of organizational talent. The meaning of the word "accelerated" is that such development takes place at a pace that is significantly higher than that of "traditional" development that allows an individual to learn the intricacies of the current job, observe incumbents in a higher level position (usually, one level up), practice elements of the boss' job when being delegated tasks, undergoing formal training, or benefiting from the knowledge accumulated by others and codified in the knowledge management systems. Accelerated development means, contrary to the usual, more traditional developmental path, bypassing traditionally expected career steps, stretched over a longer period of time learning opportunities, and/or age-related developmental progression. Accelerated development is a necessity for organizati of qualified individuals in the internal or external labor markets, and significant pressures from other organizations that are ready to "poach" talented executives and employees and offer them even higher levels of responsibility and remuneration. Organizations also respond with accelerated development initiatives to the individuals engaged in career entrepreneurship, i.e., those who make alternative career investments in order to enjoy quicker returns in terms of career growth and progression. This paper discusses the challenges of accelerated development programs, such as not only learning the competencies required in the new position, but also developing a new identity. The paper discusses the process of going through an accelerated development program and identifies its important elements: preentry experience, initial surprise of getting into the accelerated program's environment and learning to use it, engaging in identity exploration through examining past and present identities, staging identity experiments, and, finally, stepping out of the program into the real world.
    Keywords: organizational behavior, human resource management, executive education, identity, accelerated development
    Date: 2007–09–27

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