Economics of Governance

, Volume 19, Issue 1, pp 1–19 | Cite as

Economics of evaluation (with special reference to promotion and tenure committees)

Original Paper
  • 35 Downloads

Abstract

Previous research suggests that universities that fear tenuring bad candidates more than they fear rejecting good candidates would optimally have both department and outside evaluating committees. I find that a higher relative cost of accepting bad candidates is neither necessary nor sufficient for the optimality of more than one committee. Also, with some probability, t, the administration will tenure one with split recommendations from two committees, if one committee is more accurate than the other, one structure will have fewer errors of both types for some range of t, and possibly a lower expected loss from errors for all t.

Keywords

Promotion Tenure Hierarchy 

JEL Classification

M51 

References

  1. Aghion P, Jackson MO (2016) Inducing leaders to take risky decisions: dismissal, tenure, and term limits. Am Econ J Microecon 8:1–38CrossRefGoogle Scholar
  2. Agrawal A, McHale J, Oettl A (2014) Why stars matter. In: NBER working paper 20012, Cambridge, MA, March 2014Google Scholar
  3. Akerlof G, Michaillat P (2017) Beetles: biased promotions and persistence of false beliefs. In: NBER working paper 23523, Cambridge, MA, June 2017Google Scholar
  4. Besancenot D, Faria JR, Vranceanu R (2009) Why business schools do so much research: a signaling explanation. Res Policy 38:1093–1101CrossRefGoogle Scholar
  5. Carmichael HL (1988) Incentives in academics: why is there tenure? J Polit Econ 96:453–472CrossRefGoogle Scholar
  6. Carmichael HL (2001) Tenure promotes honest hiring. Policy Options 11:10–11Google Scholar
  7. Ebenstein L (2015) Chicagonomics: the evolution of chicago free market economics. St. Martins Press, New YorkGoogle Scholar
  8. El Ouardighi F, Kogan K, Vranceanu R (2013) Publish or teach: analysis of the professor’s optimal career path. J Econ Dyn Control 37:1995–2009CrossRefGoogle Scholar
  9. Faria JR, McAdam P (2015) Academic productivity before and after tenure: the case of the specialist. Oxf Econ Pap 67:291–309CrossRefGoogle Scholar
  10. Faria JR, Mixon FG Jr, Salter SP (2012) An economic model of workplace mobbing in academe. Econ Educ Rev 31:720–726CrossRefGoogle Scholar
  11. Faria JR, Loureiro PRA, Mixon FG Jr, Sachsida D (2013) Faculty promotion in academe: theory and evidence from U.S. economics departments. J Econ Econom 56(1):1–27Google Scholar
  12. Heckman JJ (2014) Private notes on gary becker. In: IZA working paper number 8200, May 2014Google Scholar
  13. Heckman JJ (2017) Publishing and promotion in economics: the curse of the top five. In: Paper presented at American economic association annual meeting, January 7, 2017. https://hceconomics.uchicago.edu/sites/default/files/file_uploads/AEA-Curse-Five-HO-SMALL-STATIC_2017-01-06d_jbb.pdf
  14. Lazear EP (1995) Personnel economics. MIT Press, CambridgeGoogle Scholar
  15. Lazear EP, Gibbs M (2009) Personnel economics in practice, 2nd edn. Wiley, HobokenGoogle Scholar
  16. Lazear EP, Gibbs M (2015) Personnel economics in practice, 3rd edn. Wiley, HobokenGoogle Scholar
  17. Lazear EP, Shaw KL (2011) A personnel economics approach to productivity enhancement. Nord Econ Policy Rev 2:209–251Google Scholar
  18. Lucas RE (1988) On the mechanics of economic development. J Monet Econ 22:3–42CrossRefGoogle Scholar
  19. McPherson MA (2012) Ranking U.S. economics programs by faculty and graduate publications: an update using 1994–2009 data. South Econ J 79:71–89CrossRefGoogle Scholar
  20. Powdthavee N, Riyanto YE, Knetsch J (2017) Impact of lower rated journals on economists’ judgments of publication lists: evidence from a survey experiment. In: IZA working paper number 10752, April 2017Google Scholar
  21. Prendergast C (2015) Professionalism and contracts in organizations. J Labor Econ 33:591–621CrossRefGoogle Scholar
  22. Prendergast C, Topel RH (1996) Favoritism in organizations. J Polit Econ 104:958–978CrossRefGoogle Scholar
  23. Sah RK, Stiglitz JE (1986) The architecture of economic systems: hierarchies and polyarchies. Am Econ Rev 76:716–727Google Scholar
  24. Sah RK, Stiglitz JE (1988) Committees, hierarchies, and polyarchies. Econ J 98:451–470CrossRefGoogle Scholar
  25. Spence AM (1974) Market signaling. Harvard University Press, CambridgeGoogle Scholar
  26. Wallis WA (1993) George J. Stigler: in Memoriam. J Polit Econ 101:774–779CrossRefGoogle Scholar

Copyright information

© Springer-Verlag GmbH Germany 2017

Authors and Affiliations

  1. 1.Department of EconomicsAppalachian State UniversityBooneUSA

Personalised recommendations