Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/93277
Authors: 
Guarino, Cassandra
Reckase, Mark D.
Stacy, Brian
Wooldridge, Jeffrey M.
Year of Publication: 
2014
Series/Report no.: 
IZA Discussion Paper 7974
Abstract: 
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.
Subjects: 
teacher labor markets
teacher quality
value-added
JEL: 
C01
I20
J45
J01
Document Type: 
Working Paper

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