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ERIC Number: ED558129
Record Type: Non-Journal
Publication Date: 2014-Feb-6
Pages: 47
Abstractor: As Provided
Reference Count: 14
Evaluating Specification Tests in the Context of Value-Added Estimation. Working Paper #38
Guarino, Cassandra M.; Reckase, Mark D.; Stacy, Brian W.; Wooldridge, Jeffrey M.
Education Policy Center at Michigan State University
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.
Education Policy Center. Michigan State University, 201 Erickson Hall, East Lansing, MI 48824-1034. Tel: 517-355-4494; Fax: 517-432-6202; e-mail:; Web site:
Publication Type: Reports - Research
Education Level: N/A
Audience: N/A
Language: English
Sponsor: Institute of Education Sciences (ED)
Authoring Institution: Michigan State University, Education Policy Center
IES Funded: Yes
Grant or Contract Numbers: R305D10002