Each year, public schools are rewarded with bigger budgets for achieving a rating of “excellent” or “recommended” and are punished for rating ” needs improvement”.These ratings are based on meeting thresholds on a broad set of measures such as attendance rates, graduation rates, standardized test scores, SAT scores, and so on. Discuss the incentives for school principals (who are the agents, in this case) under this scheme and how you might improve them.
Answer preview
Having a measure like the results encourages the principles to cheat in their information for the goal of increasing the funding for the school. But by being able to measure the effort of the teachers and the staff, it is possible to motivate the people more effectively in monitoring the effort that they put into helping improve the performance of the students. Changing the incentive to making the student perform better can also go a long way in helping to improve the performance of the children. It is a factor that can benefit the students by assisting them to get better skills while at the same time helping increase the funding for the school.
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