The impact of grade ceilings on student grades and course evaluations: Evidence from a policy change

•Grade ceilings are effective in lowering grades, and the resulting changes in the distribution of grades depends upon the level of the grade ceiling.•Grade ceilings lead to lower student evaluations of teachers (SETs), and the impact depends upon the level of the ceiling.•Evidence from grade ceiling policies suggests that grades influence SETs.

This paper analyzes the effects of a grade ceiling policy on grade distributions and course evaluations. Results show that the effects vary based upon the level of the grade ceiling. A ceiling set at 2.8 decreased overall grade point average (GPA) by reducing the number of As and Bs and increasing the number of lower grades given. This low ceiling also increased the number of withdrawals and significantly lowered course evaluations. A ceiling set at 3.2 decreased overall GPA by reducing the number of As and increasing the number of Bs given, but the effects on course evaluations were smaller in magnitude and insignificant.