Evaluating Specification Tests in the Context of Value-Added Estimation
We study the properties of two specification tests that have been applied to a variety of estimators in the context of value-added measures (VAMs) of teacher and school quality: the Hausman test for choosing between random and fixed effects and a test for feedback (sometimes called a "falsification test"). We discuss theoretical properties of the tests to serve as background. An extensive simulation study provides important further insight to the VAM setting. Unfortunately, while both the Hausman and feedback tests have good power for detecting the kinds of nonrandom assignment that can invalidate VAM estimates, they also reject in situations where estimated VAMs perform very well. Consequently, the tests must be used with caution when student tracking is used to form classrooms.
|Date of creation:||Feb 2014|
|Publication status:||published in: Journal of Research on Educational Effectiveness, 2015, 8 (1), 35-59.|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wooldridge, Jeffrey M., 1990. "A Unified Approach to Robust, Regression-Based Specification Tests," Econometric Theory, Cambridge University Press, vol. 6(01), pages 17-43, March.
- Jesse Rothstein, 2008.
"Teacher Quality in Educational Production: Tracking, Decay, and Student Achievement,"
NBER Working Papers
14442, National Bureau of Economic Research, Inc.
- Jesse Rothstein, 2010. "Teacher Quality in Educational Production: Tracking, Decay, and Student Achievement," The Quarterly Journal of Economics, Oxford University Press, vol. 125(1), pages 175-214.
- Jesse Rothstein, 2008. "Teacher Quality in Educational Production: Tracking, Decay, and Student Achievement," Working Papers 1058, Princeton University, Woodrow Wilson School of Public and International Affairs, Education Research Section..
- Cory Koedel & Julian R. Betts, 2011.
"Does Student Sorting Invalidate Value-Added Models of Teacher Effectiveness? An Extended Analysis of the Rothstein Critique,"
Education Finance and Policy,
MIT Press, vol. 6(1), pages 18-42, January.
- Cory Koedel & Julian Betts, 2009. "Does Student Sorting Invalidate Value-Added Models of Teacher Effectiveness? An Extended Analysis of the Rothstein Critique," Working Papers 0902, Department of Economics, University of Missouri.
- McClain, Katherine T. & Wooldridge, Jeffrey M., 1995. "A simple test for the consistency of dynamic linear regression in rational distributed lag models," Economics Letters, Elsevier, vol. 48(3-4), pages 235-240, June.
- Cassandra M. Guarino & Mark D. Reckase & Jeffrey M. Woolrdige, 2014.
"Can Value-Added Measures of Teacher Performance Be Trusted?,"
Education Finance and Policy,
MIT Press, vol. 10(1), pages 117-156, November.
- Guarino, Cassandra M. & Reckase, Mark D. & Wooldridge, Jeffrey M., 2012. "Can Value-Added Measures of Teacher Performance Be Trusted?," IZA Discussion Papers 6602, Institute for the Study of Labor (IZA).
- Petra E. Todd & Kenneth I. Wolpin, 2003. "On The Specification and Estimation of The Production Function for Cognitive Achievement," Economic Journal, Royal Economic Society, vol. 113(485), pages 3-33, February.
- Josh Kinsler, 2012. "Assessing Rothstein's critique of teacher value‐added models," Quantitative Economics, Econometric Society, vol. 3(2), pages 333-362, 07.
- Manuel Arellano & Stephen Bond, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Oxford University Press, vol. 58(2), pages 277-297.
- Tom Doan, "undated". "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp7974. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.