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RETAKING IN HIGH STAKES EXAMS: IS LESS MORE?
Author(s) -
Krishna Kala,
Lychagin Sergey,
Frisancho Veronica
Publication year - 2018
Publication title -
international economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.658
H-Index - 86
eISSN - 1468-2354
pISSN - 0020-6598
DOI - 10.1111/iere.12276
Subject(s) - ex ante , limiting , norm (philosophy) , economics , business , marketing , microeconomics , computer science , political science , engineering , law , macroeconomics , mechanical engineering
Placement, both in university and in the civil service, according to performance in competitive exams is the norm in much of the world. Repeat taking of such exams is common despite the private and social costs it imposes. We develop and estimate a structural model of exam retaking using data from Turkey's university placement exam. Limiting retaking results in all agents gaining ex ante and most gaining ex post. This result comes from a general equilibrium effect: Retakers crowd the market and impose negative spillovers on others by raising acceptance cutoffs.