two-step value-added model

Accounting for Student Disadvantage in Value-Added Models

We study the relative performance of two policy relevant value-added models – a one-step fixed effect model and a two-step aggregated residuals model – using a simulated dataset well grounded in the value-added literature. A key feature of our data generating process is that student achievement depends on a continuous measure of economic disadvantage. This is a realistic condition that has implications for model performance because researchers typically have access to only a noisy, binary measure of disadvantage.

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