Does a ban on grade inflation bring about better information transmission? This paper studies grade inflation in a framework in which a sender (the professor) sends a signal (GPA's) about the students' knowledge to receivers (employers in the job market). If students' ability increases annually,...

This study proposes an information asymmetry hypothesis to examine why bank credit ratings vary among countries even when bank financial ratios remain constant. Countries are divided among those with low and high information asymmetry. The former include high-income countries, those in North...