Archive for May 24th, 2011

Study: Republican profs reward high achievement more than their Democrat colleagues…

May 24, 2011

Economists Talia Bar (Cornell) and Asaf Zussman (Hebrew University) studied grading tendencies of Republican and Democratic college professors..

Their results are reported in a  forthcoming American Economic Journal article titled “Partisan Grading“.

The highlights:

The evidence suggests that student grades are linked to the political orientation of professors: relative to their Democratic colleagues, Republican professors are associated with a less egalitarian distribution of grades.

That is, the variance of grades is higher in courses taught by Republicans than in courses taught by Democrats. Moreover, in additional analysis we find that relative to their Democratic colleagues, Republican professors tend to assign more very low and very high grades

The differences are highly statistically significant.

The observed pattern is consistent with the hypothesis that Republican professors are associated with … higher returns to student ability.

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The results suggest that the allocation of grades is associated with the worldview or ideology of professors.

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Economist Mark Perry observesOne conclusion here might be that highly motivated, high-achieving students should prefer classes from Republican professors because it’s more likely they’ll be rewarded with a really high grade

… and less motivated, lower-achieving students should prefer classes from Democratic professors, because it’s less likely that they’ll receive a really low grade.

What happens if we crash into the debt ceiling?

May 24, 2011

Economist Alan Blinder’s WSJ op-ed put the debt ceiling issue into perspective:

Consider inflows and outflows of cash to and from the Treasury … at average fiscal 2011 rates, receipts cover only about 60% of expenditures.

So if we hit the borrowing wall traveling at full speed, the U.S. government’s total outlays — a complex amalgam that includes everything from Social Security benefits to soldiers’ pay to interest on the national debt — will have to drop by about 40% immediately.

A 40% shortfall translates to over $4 billion a day, including Saturdays and Sundays.

For openers, suppose the federal government actually does reduce its expenditures by 40% overnight.

That translates to roughly $1.5 trillion at annual rates, or about 10% of GDP.

That’s an enormous fiscal contraction for any economy to withstand, never mind one in a sluggish recovery with 9% unemployment.

Of course, Blinder insinuates that the risk is too great.

My view: gotta face the issue some day, why not now?