The role of testing noise in the estimation of achievement-based peer effects

Hongliang ZHANG

    Research output: Contribution to journalJournal articlepeer-review

    2 Citations (Scopus)

    Abstract

    I demonstrate that in the value-added estimation of peer effects using lagged peer achievement, testing noise may generate another bias in addition to the well-known attenuation bias. Such a bias, which I refer to as the “reversion bias,” may arise when some of a student's current peers happen to be his/her former peers whose performances in the baseline test were subject to the same common testing noise as the student's own. I propose a solution to overcome this problem by exploiting only the variation in the new peers’ portion of the overall peer quality. Using real-world data, I illustrate the existence of this bias and demonstrate the proposed solution.

    Original languageEnglish
    Pages (from-to)113-123
    Number of pages11
    JournalEconomics of Education Review
    Volume54
    DOIs
    Publication statusPublished - 1 Oct 2016

    Scopus Subject Areas

    • Education
    • Economics and Econometrics

    User-Defined Keywords

    • Mean reversion
    • Measurement error
    • Peer effects
    • Student achievement

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