There continues to be a lively interest in the relationship between instructor evaluations and instructor tendencies to “inflate” grades. Allen Kelley and Richard McKenzie have provided interesting theoretical analyses of this relationship in earlier issues of the JEE. The authors of this article review the work of Kelley and McKenzie, and then carry the analysis further. New dimensions are considered, such as the possibility that students will look upon a university education as an inferior “Giffen” good. The implications of such a development are set forth in the concluding section of the report.
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Lichty et al. (1978) studied this question.
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