Abstract
We assess the effect of the completion of online homework assignments on exam performance in “Principles of Economics” using a unique experimental method. For specific homework assignments we randomize students into two groups: those for whom the assignment is optional and those for whom it is required. This randomization, which affects incentives to complete the homework assignment for a particular topic, generates an instrument that helps identify the effect of homework completion on topic‐specific exam performance. Results of the instrumental variables analysis, as well as results of a variety of other analyses, indicate that the completion of the assigned homework is positively (if not always significantly) correlated with higher scores on the midterms but not on the final exam—indicating “decay” in the homework effect over the course of the semester.
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