School System Evaluation By Value-Added Analysis under Endogeneity
AbstractValue-added analysis is a common tool in analysing school performances. In this paper, we analyse the SIMCE panel data which provides individual scores of about 200,000 students in Chile, and whose aim is to rank schools according to their educational achievement. Based on the data collection procedure and on empirical evidences, we argue that the exogeneity of some covariates is questionable. This means that a nonvanishing correlation appears between the school-specific effect and some covariates. We show the impact of this phenomenon on the calculation of the value-added and on the ranking, and provide an estimation method that is based on instrumental variables in order to correct the bias of endogeneity. Revisiting the definition of the value-added, we propose a new calculation robust to endogeneity that we illustrate on the SIMCE data.
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Bibliographic InfoPaper provided by Toulouse School of Economics (TSE) in its series TSE Working Papers with number 10-185.
Date of creation: Jul 2010
Date of revision:
Other versions of this item:
- Manzi, Jorge & San Martin, Ernesto & Van Bellegem, Sébastien, 2010. "School System Evaluation By Value-Added Analysis under Endogeneity," IDEI Working Papers 631, Institut d'Économie Industrielle (IDEI), Toulouse.
- MANZI, Jorge & SAN MARTIN, Ernesto & VAN BELLEGEM, Sébastien, 2010. "School system evaluation by value-added analysis under endogeneity," CORE Discussion Papers 2010046, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-02 (All new papers)
- NEP-EDU-2010-10-02 (Education)
- NEP-LAB-2010-10-02 (Labour Economics)
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- Belleflamme,Paul & Peitz,Martin, 2010. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9780521681599.
- Winfried Pohlmeier & Luc Bauwens & David Veredas, 2007. "High frequency financial econometrics. Recent developments," ULB Institutional Repository 2013/136223, ULB -- Universite Libre de Bruxelles.
- Alejandro Carrasco & Ernesto San Mart’n, 2012. "Voucher system and school effectiveness: Reassessing school performance difference and parental choice decision-making," Estudios de Economia, University of Chile, Department of Economics, vol. 39(2 Year 20), pages 123-141, December.
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