Examination rules and student effort

- We show how different examination rules affect rational students' learning effort.
- A second attempt to pass an exam decreases effort at the first attempt.
- The school sets rules to manipulate student effort towards the first attempt.
- The malus account maximizes effort and educational attainment.
- A resit charge maximizes the passing probability but minimizes students' utility.

This paper contributes to the economics of examination rules. We show how rational students reallocate their learning effort as a response to a charge for the second attempt (resit), a resit mark cap, a variation of the time span between two attempts, and a malus points account. The effort maximizing rule is the malus account, a resit charge delivers the highest overall passing probability.