Julie Cullen at UCSD visited Duke this week and gave a talk this morning on the unintended consequences of education reform. Her talk is a general summary of the lessons drawn from three papers on 1) the impact of fiscal incentive on student disability rates, 2) school gaming under a performance accountability system, 3) strategic high school choice under Texas’ top ten percent plan.
These papers ask different specific questions, but they all address broadly the mechanisms through which education reforms can change individual behavior and create unintended consequences. The intuition is that whenever eligibility to funding/benefits are conditional on some manipulable measures, those measures will be manipulated. This same logic is applied to examine how fiscal incentives, performance standards, and policies aimed at expanding college access have distorted incentives of schools.
Although I am not very interested in the economics of education, I can imagine the same approach being used to assess other types of government policies, e.g. welfare program participation.