RE: principal-agent in schools

From: Antony Davies, Ph.D. (antony@antolin-davies.com)
Date: Sun Sep 07 2003 - 16:43:55 CDT

  • Next message: Antony Davies, Ph.D.: "RE: principal-agent in schools"

    I hear Prof. Coffin's criticism, but suggest that he's glossing over an
    important point. I agree that aligning teachers'/administrators' incentives
    with students' incentives is necessary. However, it is not sufficient. Those
    common incentives must elicit valuable outcomes. For example,
    teachers/administrators can be rewarded for how high students can jump while
    students can receive grades on the basis of how high they can jump --
    incentives are aligned, but they elicit outcomes (high jumping) that are of
    questionable value.

    -----Original Message-----
    From: dcoffin [mailto:dcoffin@iun.edu]
    Sent: Sunday, September 07, 2003 1:45 PM
    To: antony@antolin-davies.com; Steven Lauridsen
    Cc: Teaching Econ Discussion List (E-mail)
    Subject: RE: principal-agent in schools

    While I can agree with much of what Antony Davies said (although I'm less
    sanguine about vouchers than he is, but that's a debate for another day), I
    think his solution is off-target.

    The problem is the schools have an incentive--to achieve acceptable pass
    rates
    on the PSAE, with negative potential consequences if pass rates are not high
    enough. The schools, for whatever reason (I don't know how Illinois law
    works
    here; it may be legislative), apparently do not use student results on the
    PSAE to determine anything about student outcomes. So students have little
    incentive to take the test seriously. (Contrast that with Indiana, where
    students have to perform aceptably on a standardized test, called ISTEP, to
    graduate.)

    Antony's solution does not address that, except perhaps inferentially, with
    the potential of creating a grass-roots movement against the PASE. His
    solution will (might) also provide a different sort of pool of information
    about the quality of the product being produced by schools (although I might
    also suggest surveying employers, looking at student success in the first
    year
    of college, and other metrics).

    The question is how to design a system in which students' incentives are
    aligned with teachers' and administrators' incentives, given the current
    legal
    enviornment in Illinois. My only suggestion, within those constraints, is
    to
    make the PASE scores count for student outcomes.

    Donald A. Coffin
    Associate Professor of Economics
    Indiana University Northwest
    Gary, IN 46408



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