This paper studies a model where student effort and talent interact with parental and teachers' investments, as well as with school system resources. The model is rich, yet sufficiently stylized to provide novel implications. It can show, for example, that an improvement in parental outside...

Concerns over grade inflation and the profusion of high grades have led institutions of higher education in the United States to adopt various grading reforms. An element common to several prominent reforms is providing information on the distribution of grades in different courses. The main...